Substitutes for Consideration

Promissory Estoppel Common Law Rules: Within the family

a. A gratuitous promise is not enforceable under promissory estoppel b. A promise relied on under promissory estoppel can be implied from a party's intent c. Neither the absence of an express promise not the absence of consideration is a bar to enforcing the promise

Promissory Restitution Common Law Cases

a. A promise based on moral obligation but made without legal consideration does not constitute an enforceable contract unless it is tied to a preexisting legal obligation b. A moral obligation may be sufficient consideration to support a promise to pay if the promisor receives a material benefit c. If a person receives a material benefit from another, other than gratuitously, a subsequent promise to compensate is enforceable d. If not a professional, less likely to recover under restitution

Promissory Estoppel Common Law Rules: Promises in a Commercial Context

a. A promise to pay a pension can be enforced under promissory estoppel b. New requirements for promissory estoppel i. A promise is clear an unambiguous on its terms ii. Reliance by the party to whom the promise is made iii. Reliance must be reasonable and foreseeable iv. Party asserting the estoppel must be injured by the reliance

Restitution in the Absence of a Promise Common Law Cases

a. One can be required to pay for hospital services when when one does not request or consent to them b. Law does not find recovery for unjust impoverishment, only unjust enrichment c. A subcontractor may recover from a property owner under unjust enrichment d. Unmarried cohabitants may be entitled to a share of the wealth jointly accumulated during the cohabitation

Promissory Restitution

a. Promises to pay for services, but only after the benefits are received b. If you promise to pay a debt after filing bankruptcy, it is binding

Promissory Estoppel Common Law Rules: Charitable Subscriptions

a. Two conditions must be met for a charitable pledge to be enforceable i. A promise to give property to a charitable institution ii. Consideration or reliance on the promise

Restitution

1. A person who is unjustly enriched at the expense of another is subject to liability in restitution

Restitution Restatement Rules

1. A person who supplied services without the other's consent is entitled to restitution if a. He acted unofficiously and with the intent to charge b. The services were necessary to prevent harm c. The person supplying the services had to reason to know the other would not consent d. It was impossible for the other to give consent 2. If you owe a debt that runs the statute of limitations, you can still have to pay if a. You admit the debt still stands b. You pay anything on it c. You waive the statute of limitations

Promissory Estoppel

1. A promise is enforceable by law, even if made without formal consideration, when a promisor has made a promise to a promisee who then relies on that promise to his detriment

Promissory Estoppel Basics

1. Must have a promise 2. Must have detrimental reliance upon the promise a. Does not require one to give up something to which he is legally entitles 3. Injustice can only be avoided by the enforcement of the promise

Promissory Estoppel Restatement Rules

1. Promise Reasonably Inducting Action or Forbearance a. A promise which the promisor can reasonably expect to induce action is binding if injustice can be avoided only by the enforcement of the promise

Pre-Acceptance Reliance Common Law Rules

1. Promissory estoppel will make an offer irrevocable if the promisee has acted in reliance on the promise 2. Reasonable reliance can be a substitute for consideration 3. Promissory estoppel can be a replacement for consideration in an option contract that is not supported by consideration

Pre-Acceptance Reliance Basics

1. Requirements of Promissory Estoppel a. Clear and definite promise b. Promise made with the expectation that the promisee would rely on it c. Promisee's reasonable reliance on the promise d. Promisee's definite and substantial detriment as a result of the reliance that would be unjust not to enforce the promise

Restitution Basics

1. Two elements are central to restitutionary recovery a. But what is enrichment? b. When is enrichment unjust 2. Implied-in-law a. Unjust enrichment 3. Restitution in the Absence of a Promise a. One party has received a benefit from another but made no promise to pay for the benefit i. Could still be some legal obligations ii. Does not count if you do it gypsy b. Elements for cause of action in a quasi contract i. Plaintiff has conferred a benefit on the defendant ii. The defendant had knowledge of the benefit iii. Defendant has accepted or retained benefit conferred, and iv. The circumstances are such that it would be inequitable for the defendant to retain the benefit without paying fair value for it

Pre-Acceptance Reliance

1. When one party acts on an offer to his detriment then the offeror revokes