Business Law Ch 10
Suppose Victor promises to stop smoking cigarettes during the winter. What type of promise has Victor made?
A promise to refrain from doing something.
Which of the following terms is not a condition required in promissory estoppel? I. One party makes a promise knowing the other party will rely on it. II. The other party does rely on the promise. III. The only way to avoid injustice is to enforce the promise.
All the terms are required.
For a court to enforce a promise, who must offer consideration?
Both sides.
For a promise to be enforced by the courts, there must be
Consideration.
Suppose Markus offers to sell Zara his surfboard for $200. Zara responds, "I'll look at it on the weekend, and if I like it, I'll pay you." At this point, Zara has not committed to doing anything. The law considers this a(n) ________________.
Illusory promise.
Frank works as a cellphone salesman. He has worked at the same company for the past two years, and one day his boss approaches him with good news. He says because Frank has sold so many phones lately, he is going to give Frank a $500 bonus. Three weeks later, Frank has still not received the bonus. Can Frank sue his boss to enforce the promise?
No, this is an example of past consideration.
A promise to do something that you are already obligated to do is:
Not valid consideration.
Which of the following is an exception to the preexisting duty rule?
Unforseen circumstances.
Suppose your boss tells the people you work with, "If any worker shows up at my house on Saturday and helps me clean my pool for three hours, I will pay the worker $75." You show up and help with the pool cleaning. What type of contract did you and your boss create?
Unilateral contract.
Suppose Xavier receives an offer to play on a minor-league hockey team a few states away from where he currently lives. He moves out of his apartment, turns down offers from other teams, and moves all his possessions to a new apartment close to the hockey arena. After moving there, Xavier is then told there is no position for him anymore! May he sue the hockey team?
Yes, this situation looks like promissory estoppel.
