In short
Promissory estoppel makes a promise enforceable without consideration when the promisor should reasonably expect the promisee to rely on it, the promisee does rely on it to their detriment, and injustice can be avoided only by enforcing it.
Key takeaways
- It substitutes for consideration; it doesn't create a contract where the other elements are missing.
- Courts may limit recovery to the losses caused by the reliance.
- Common examples are charitable pledges and promises of gifts relied on by the recipient.
Where it's tested
REG: Business Law: Contracts — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
An uncle promises his niece $20,000 to buy a car. Relying on the promise, she signs a purchase contract. The uncle then refuses to pay. Which doctrine may allow the niece to enforce the promise even without consideration?