Book Opener

Figure 8.2The Elements of Promissory Estoppel1. The promise must be made to bring about action or forbearance by anotherperson who gave no consideration.2. The one who gave no consideration must have relied on the promise and changedhis or her position in a significant way.3. Injustice can be avoided only by enforcing the agreement.THE ELEMENTS OF PROMISSORY ESTOPPELPromissory estoppel was created to prevent injustice.Which of the three elements of promissory estoppelwould be the most difficult to prove?176 Unit 2: Entering Into ContractsExample 6. Zeke knows that his niece, Chalese, wants to go toart school but has little money to do so. When she gets into theschool of her choice, he promises to give her $50,000 to help herpay off her loans after she graduates. Chalese is very excitedabout her Uncle’s promise and takes action immediately. Shequits her job, borrows money, accumulates a great deal of debt,and eventually graduates from art school. Zeke then notifiesChalese that he has changed his mind. Chalese is devastated. Toprevent injustice, the court may stop Zeke from claiming thatChalese gave no consideration for his promise.OptionSometimes an offeree will give consideration to an offeror inexchange for a promise from the offeror to keep an offer open for aspecified period of time. This is known as an option . Under the UCC,an exception exists to the rule requiring consideration for an option.When a merchant makes a written offer stating the period of time duringwhich an offer will remain open, consideration is not needed. The offer,which is called a firm offer , or an irrevocable offer, must be signedby the offeror. The time permitted for acceptance cannot exceedthree months.Unenforceable AgreementsWithout ConsiderationThe promises previously described are exceptions to the general rulethat consideration must support an enforceable contract. The exceptionsare allowed by state statute or because the courts, in the interest of fairnessor justice, find it inappropriate to require consideration.