Promissory Estoppel

Question 1

How does Section 90 of the Restatement of the Law of Contracts define consideration?

Answer 1

A promise which the promisor should reasonably expect to induce action or forbearance of a definite and substantial character on the part of the promisee and which does induce such action or forbearance is binding if injustice can be avoided only by enforcement of the promise

Question 2

What is the theory of reliance under the Promissory Estoppel doctrine?

Answer 2

• Not every gratuitous promise and reliance thereon is enforceable
• The test for promissory estoppel seems to be whether the promisor could reasonable have expected the detriment to be incurred on the strength of the promise. If the detriment is incurred, and there is no way of avoiding injustice, the promise is enforceable
• The doctrine must be limited in its application to that group of cases where the reliance on the promise brought about such a substantial changed condition on the part of the promisee that enforcement of the promise is the only way to avoid injustice
• The meaning of injustice is indefinite and must be determined on a case by case basis

Question 3

Can promissory estoppel be enforced in employment contracts?

Answer 3

Promissory Estoppel might also be invoked where an employee has relied upon a promise by the employer to change the “at will” status of the employment, for example by quitting an existing job or rejecting another job offer

Question 4

Do public charities have to prove reliance?

Answer 4

Public charities do not have to prove reliance or forbearance

Public Policy argument - charities service the public and make possible projects that benefit the public