Substitutes for Consideration

Question 1

Substitutes for Consideration

Define: Promissory Estoppel

Answer 1

There is not technically a contract, but the promisee acts in reliance of the promisor’s promise to their detriment. So the contract is enforced to avoid unconscionable injury to the promisee.

Question 2

Substitutes for Consideration

RS 90: Promise reasonably inducing Action or Forbearance

Answer 2

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

Question 3

What is the whole idea of restitution?

Answer 3

Used to make the body whole.
The whole idea of restitution is compensation for value provided.
Compensation for losses one incurs, it must also be proved that it was not a gift.

Question 4

Define: Unjust Enrichment

Acevedo Definition

Answer 4

Retention of a benefit conferred to another, without offering compensation in circumstances where compensation is reasonably expected.
Acevedo: P must prove that the defendant was enriched and that retention of the benefit without payment would be unjust.

Question 5

Elements of Promissory Estoppel

Answer 5

1) A clear and unambiguous promise
2) A reasonable and foreseeable reliance by the party to whom the promise is made.
3) An injury sustained by the party asserting the estoppel by reason of reliance.