7. Consideration and promissory estoppel - Law Trove
Problem questions which involve consideration and promissory estoppel will will be paired with issues of offer, acceptance and intention to create legal relations. with his legal team, he has decided he doesn't need their advice anymore. Promissory estoppel is the legal principle that a promise is enforceable by law, even if made without formal consideration, when a promisor has. This chapter analyzes the issue of consideration in contract law. a promise, despite a lack of consideration, through the doctrine of promissory estoppel. Where.
D had killed a man and asked P to ride to London to get him a pardon. Upon return D said he would give him money, but then never did. E borrowed money to pay for sons education who promised to pay it back when came of age. Husband then promised to pay the money. E sued husband to make him pay. Husband was in no way connected with E when the money was expended, so he received no consideration.
A promise without consideration cannot be binding. PC Agreement made for sale of building in return for shares. So as to not upset the market it was agreed that P should not be able to sell some shares for a period.
P threatened not to carry out main contract unless indemnified against potential loss.
5. Consideration and Promissory Estoppel - Law Trove
Sub-contract made to keep P happy. Issue as to whether there was consideration for the indemnity contract. All three features are present in this case. A promise to perform, or the performance of a pre-existing contractual obligation can be valid consideration.
Court refused to adopt a rule to the effect that here there is a threat to repudiate there cannot be consideration as it would render the law too uncertain. Commercial pressure is not enough for a finding of duress.
- Promissory Estoppel Example
- The Doctrine of Promissory Estoppel
- Promissory Estoppel Further Explained
In determining whether there was coercion of the will such that there was no true consent it is material to enquire whether the person alleged to have been coerced protested; whether he had an alternative course of action open to him such as an adequate legal remedy; whether he was independently advised; whether he took steps to avoid it. A contract may be void on the basis of economic duress only where it satisfies the above conditions.
Doctrine of Consideration and Promissory Estoppel
Manager of colliery applied for police protection for his mine during a strike. Police said that it would only do so if it were paid at a special rate by M for doing so.
Father offered mother money towards the maintenance of child so long as the child was well looked after and happy. Denning says has always thought that a promise to perform an existing duty, or performance of it, should be regarded as good consideration because it is a benefit to the person to whom it is given.
In this case thinks the fathers promise should be regarded as a unilateral contract. The ascertainment of a specified sum in lieu of the unascertained has always been held to be good consideration. A promise to perform a pre-existing duty can be good consideration so long as there is nothing in the transaction which is contrary to the public interest. In this case he gave her money to avoid the trouble and expense of coming to court notwithstanding that he would have had a defence.
Promissory Estoppel Example: Everything You Need to Know
Also important is that she could have returned to the husband and if he had rejected her she would have been entitled to money from him. Thus her right to maintenance had only ever been suspended rather than forfeited. Uncle agrees to pay in consideration of marriage for so long as their wage stayed below a certain amount.
Williams v Williams  1 WLR Husband agreed to pay deserted wife maintenance so for long as she was single and indemnified him against all debts incurred by her and not to use his name to obtain credit.
However, the police may lend constables for special services at the request of a member of public. Two dissents on the basis that they thought that on the facts these actions were part of the ordinary duty; police stated that the mine would have been protected anyway, although they would have done so in a different way.
Promissory Estoppel Example: Everything You Need to Know
Majority thought that the letter could be construed as a request for marriage, being of personal satisfaction for the Uncle. It implies that a contracted promise is enforceable by law even without any consideration present. It is important, however, to understand that the promissory estoppel can only be used as a legal defense and not to initiate a legal claim. The doctrine of promissory estoppel is currently used in the United States legal system but the specific rules and regulations of it vary by state and jurisdiction.
It is often viewed as a modern law and is reserved for very specific legal situations. Elements of Promissory Estoppel There are very specific elements that are required to make a claim in court for promissory estoppel.Promissory Estoppel
A substantial detriment must have occurred to the promisor or promisee of the contract. A type of measurable loss must be present. The party filing the claim must have made a reasonable attempt at relying on the initial promise.
The promissory estoppel will only be granted in court if it is established that enforcing the promise is the only method for avoiding injustice. Injustice, in this setting, refers to an unfair outcome. The court will rely on evidence of email, text, and physical documentation of communication to establish if the promisor was aware that the promisee would rely on the promise.
If the doctrine of promissory estoppel is granted, the court will issue the appropriate damages. Damages can only come in the form of reliance damages. Reliance damages are considered the actions taken to restore the original harm that was the result of one party relying on the original promise. This principle was created in order to prevent a promisor from arguing against the enforcement of their former promise. Promissory Estoppel Example Let's say Mr.
Smith has a contract to create a movie. As such, he decides to hire an artist to paint the set and agrees to pay him a portion of the profits. If the artist goes on to paint the entire set and then Mr. Smith reveals he never even had a contract, and there are therefore no proceeds to share, the artist may decide to sue him. In this instance, a judge may find that Mr. Smith can't deny he had a contract with the painter, and the artist will likely receive a judgment providing compensation for his work.
Elements of a Promissory Estoppel Certain legal requirements must be fulfilled in order to trigger a promissory estoppel.
Of course, at its base, there must be someone making a promise, a promisee, and some type of detriment suffered by the promisee. Here are five legal elements of a promissory estoppel: Legal Relationship - A legal relationship must exist between two parties. Promise - The promisee must have relied on the promisor's guarantee, within reason.