Promissory Estoppel and Contract Law
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Questions and Answers

What is the primary purpose of promissory estoppel?

  • To allow recoveries when there is an oral contract
  • To prevent unjust enrichment for the promisor
  • To enforce a promise that induces reliance and avoids injustice (correct)
  • To ensure all contracts are in writing

    • Under which condition can promissory estoppel be applied?

  • When there is an existing written contract
  • When there is only an oral contract that should have been in writing (correct)
  • When reliance on a promise is unreasonable
  • When the promise is made with formal consideration

    • What type of damages can be awarded under promissory estoppel?

  • Punitive damages
  • Nominal damages
  • Reliance damages (correct)
  • Expectation damages

    • Which of the following statements about promissory estoppel is false?

    <p>It requires a formal contract to be enforceable.</p> Signup and view all the answers

    What is necessary for reliance on a promise to be deemed reasonable?

    <p>Foreseeability in the context and circumstances of the promise.</p> Signup and view all the answers

    Which of the following is a characteristic of promissory estoppel?

    <p>It may create enforceable promises without consideration.</p> Signup and view all the answers

    In a commercial context, what might affect the reasonableness of reliance?

    <p>The course of conduct and prior dealings</p> Signup and view all the answers

    How does promissory estoppel relate to the Statute of Frauds?

    <p>It can circumvent the need for written contracts in certain cases.</p> Signup and view all the answers

    What is required for a contract to be enforced under contract law?

    <p>An exchange of consideration</p> Signup and view all the answers

    Under what condition can promissory estoppel enforce an agreement?

    <p>If the promisee has suffered damage from reliance on the promise</p> Signup and view all the answers

    What does equitable estoppel prevent a party from doing?

    <p>Changing their previous position that harms another party</p> Signup and view all the answers

    What type of damages can be awarded in a successful promissory estoppel case?

    <p>Reliance damages or expectation damages</p> Signup and view all the answers

    In what situation may one party not be compelled to perform a promise under promissory estoppel?

    <p>When the promise involves employment that was revoked</p> Signup and view all the answers

    What is the primary purpose of the doctrine of consideration in contract law?

    <p>To ensure fairness in mutual promises</p> Signup and view all the answers

    How does reliance damages differ from expectation damages?

    <p>Reliance damages restore economic position; expectation damages compensate for lost bargains.</p> Signup and view all the answers

    Why is it advised to consult an attorney for cases involving promissory estoppel?

    <p>Legal issues are highly specific and complex.</p> Signup and view all the answers

    Why is a promise to give a gift in the future generally not enforceable?

    <p>Gifts are irrevocable and governed by property law.</p> Signup and view all the answers

    What is the defining characteristic of a charitable pledge?

    <p>It is a unilateral offer that can become enforceable.</p> Signup and view all the answers

    Which element is NOT required for a valid gift?

    <p>The donee must provide consideration.</p> Signup and view all the answers

    What is a deed in the context of property law?

    <p>An instrument of conveyance for items that cannot be delivered physically.</p> Signup and view all the answers

    What must occur for a charitable pledge to become a binding obligation?

    <p>The donee must incur some liability or detriment.</p> Signup and view all the answers

    What describes 'constructive delivery'?

    <p>An implied delivery recognized by law without a physical transfer.</p> Signup and view all the answers

    Which of the following defines an inter vivos gift?

    <p>A gift given while both parties are living.</p> Signup and view all the answers

    What role does the 'donee' play in the process of gifting?

    <p>The donee is the recipient of the gift.</p> Signup and view all the answers

    What qualifies as constructive delivery in the case of Sam gifting a car to Woody?

    <p>Giving Woody the keys to the car</p> Signup and view all the answers

    In the scenario involving the Father and Son regarding the painting, what was considered a valid form of delivery?

    <p>A note explaining the gift</p> Signup and view all the answers

    When does a gift given through a third person become effective if the third person represents the donee?

    <p>Once the third person receives the property from the donor</p> Signup and view all the answers

    What happens in the case when Fred tells Kazoo to return the baseball cards before delivery to Barney?

    <p>Barney will lose the case against Fred</p> Signup and view all the answers

    Which of the following scenarios represents an indirect transfer of ownership?

    <p>Father gives a note about the painting to Son</p> Signup and view all the answers

    What is an essential condition for constructive delivery when physical transfer is impractical?

    <p>The donor must provide a key or an equivalent method</p> Signup and view all the answers

    What does the court require for a delivery through a note to be considered valid?

    <p>The note must include a description of the property</p> Signup and view all the answers

    Which of the following best describes constructive delivery?

    <p>It can include symbolic acts relinquishing control</p> Signup and view all the answers

    What is true about the completion of a gift when delivered to an agent of the donee?

    <p>The gift is completed as soon as it is given to the agent.</p> Signup and view all the answers

    Which of the following describes the acceptance of a gift?

    <p>Acceptance can be presumed through delivery of the gift.</p> Signup and view all the answers

    What happens if a donee does not know about a gift but a third party accepts it on their behalf?

    <p>The donee can later reject the gift once informed.</p> Signup and view all the answers

    What distinguishes an inter-vivos gift from other types of gifts?

    <p>It involves a transfer between living people.</p> Signup and view all the answers

    What occurs if a donee rejects a gift after it has been accepted by a third party?

    <p>The donee's rejection negates the acceptance of the gift.</p> Signup and view all the answers

    Which statement about gifts causa mortis is correct?

    <p>They are only valid if between living individuals.</p> Signup and view all the answers

    What is a requirement for a gift to be valid and complete?

    <p>The gift must be accepted by the donee or their agent.</p> Signup and view all the answers

    Why did Fred lose the ability to reclaim the baseball cards from Kazoo?

    <p>Kazoo acted as an agent for the donee.</p> Signup and view all the answers

    Study Notes

    Promissory Estoppel

    • A legal doctrine preventing a party from breaking a promise that another party reasonably relied upon. It's used when a promise induces action, and fulfilling the promise is the only way to avoid injustice.
    • It can be used when there's no actual contract or when a contract is oral but should have been in writing.
    • It allows a plaintiff to recover damages even if there's no contract.
    • The implied agreement created by promissory estoppel is usually as binding as a valid contract.
    • It prevents a promisor from arguing that a promise shouldn't be enforced.
    • Courts can award reliance damages - the costs the promisee spent in reliance on contract performance.

    Promissory Estoppel vs. Contract

    • Contract law requires an exchange of consideration for a contract to be enforced. A party can withdraw if the other fails to uphold their end of the contract.
    • Promissory estoppel is an exception. The existence of a promise may be sufficient to enforce an agreement if the other party acted upon that promise and suffered damages.

    Equitable Estoppel

    • A legal doctrine that prevents a party from going back on their word in court if doing so harms the other party.

    Damages in Promissory Estoppel

    • Jurisdiction varies on the damages awarded for successful promissory estoppel cases.
    • Reliance damages are awarded based on the cost to restore the promisee's economic position before they relied on the broken promise.
    • Expectation damages are based on the cost to put the promisee in the same position as if the promise had been fulfilled.

    Promissory Estoppel in Action

    • Katz v. Danny Dare, Inc.: Promissory estoppel to enforce or compel performance of a pension payment promise.
    • Harvey v. Dow: Promissory estoppel to compel the transfer of real estate.
    • Alaska Democratic Party v. Rice: Promissory estoppel used in employment promises where a party revokes a promise after another party detrimentally relied on it. Courts do not compel hiring using promissory estoppel.

    Promissory Estoppel & Gift Promises

    • A promise to give a future gift of money to a college is generally not enforceable. Gifts are part of property law, irrevocable, and promises to make gifts fall under contract law and are unenforceable.
    • Exceptions: Charitable pledges. A charitable pledge or promise to make a future gift can be considered a unilateral offer. If the charity accepts by incurring liability or detriment, it becomes a binding contractual obligation.

    Key Terms

    • Inter-Vivos Gifts: Gifts between living people.
    • Donor: The giver of a gift.
    • Donee: The receiver of a gift.
    • Delivery: The transfer of possession of a gift.
    • Constructive Delivery: Implied transfer of possession in law even if it hasn't occurred in fact.
    • Deed: Document that serves as a conveyance instrument when physical delivery of an item is impractical.

    Gift Requirements

    • Donor Intent: Donor must intend to make a present gift of the property.
    • Delivery: Actual or constructive delivery of the gift to the donee.
    • Acceptance: The donee must accept the gift (implied by benefit).

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    Related Documents

    Promissory Estoppel: SU Law PDF

    Description

    Explore the essential principles of promissory estoppel and how it intersects with contract law. This quiz will help you understand the implications of promises in legal agreements, especially when no formal contract exists. Test your knowledge on this important legal concept.

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