Contracts & ExecutionQuestion 876 of 1605
'Promissory estoppel' may allow enforcement of a promise, even without traditional consideration, when:
a.The promise was made in jest
b.No one relied on the promise
c.The promise was purely gratuitous with no reliance
d.The promisor should reasonably expect the promise to induce reliance, the promisee justifiably and substantially relies on it, and injustice can be avoided only by enforcement
Explanation
Promissory estoppel enforces a promise despite the lack of bargained-for consideration when the promisor reasonably should expect the promise to induce action or forbearance, the promisee justifiably relies to their detriment, and enforcement is necessary to avoid injustice. In construction, a general contractor's reasonable reliance on a subcontractor's bid can invoke it. A joking promise, or a promise no one relied on, does not support promissory estoppel.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)