Steele CH 8

The Community Art Museum, a local nonprofit entity, launched a capital drive to raise funds to build a new wing of the museum building. Ronald Jones and ten other individuals each made a voluntary subscription and promised to pay $50,000 to support the new construction. Ronald later had a falling out with the lead museum curator and refused to pay the $50,000 he had promised. Ronald claimed his promise was unenforceable. Was he correct?

No, despite the fact that Ronald's promise lacked the technical requirements of a contract, most courts will enforce a pledge made to a charitable entity.

As a general rule, a promise must be supported by consideration. Which of the following is an exception to the rule and can be enforced without the support of consideration?

An obligation of record such as a judgment

Tom promises to paint the fence around John's house, and John in return pays Tom $250. John's payment of money is rightly called:

consideration

_____ is whatever the promisor demands and receives as the price for a promise.

consideration

Although there is no consideration, courts will enforce some promises on the basis of _____ when one party acts in reliance on another's promise.

promissory estoppel