Ace the Contracts & Sales Bar Challenge 2025 – Seal the Deal with Style!

Image Description

Question: 1 / 400

What does promissory estoppel require for enforcement?

An existing written contract

A reasonable reliance on a promise

Promissory estoppel is a legal doctrine that allows a party to recover on a promise, even in the absence of a formal contract, if certain elements are met. The core requirement of promissory estoppel is reasonable reliance on a promise made by one party, which leads the other party to act or refrain from acting in a way that causes them substantial detriment.

When a party reasonably relies on a promise, they must demonstrate that it was foreseeable that the promisee would rely on the promise and that their reliance was justifiable. This reliance often results in a change of position or some form of detriment, making it inequitable for the promisor to back out of the promise after the reliance has occurred.

The presence of an existing written contract is not necessary for promissory estoppel to be invoked, as the doctrine is designed to address situations where a formal contractual relationship does not exist. Similarly, mutual consent and a court's decision are not prerequisites for the application of promissory estoppel. Instead, the focus is on whether one party reasonably relied on the promise of another, leading to an action or inaction that would result in an injustice if the promise were not enforced. Thus, the emphasis on reasonable reliance is fundamental

Get further explanation with Examzify DeepDiveBeta

Mutual consent to the terms

A court's decision on the matter

Next Question

Report this question

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy