Formation of a Contract: Consideration and Intention - Equitable Estoppel
3 important questions on Formation of a Contract: Consideration and Intention - Equitable Estoppel
What happens if the promisor subsequently defaults on a gratuitous promise?
The gratuitous promise remains gratuitous, the promise cannot be enforced, and the promisee suffers the burden of his expenses
Promissory/equitable estoppel
The courts exercise of its equitable jurisdiction to prevent a promisor from claiming that she was not bound by her gratuitous promise where reliance on that promise caused injury to the promisee
Situation when equitable estoppel applies:
1. Some form of legal relationship already exists between the parties
2. One of the parties promises to release the other from some or all of the others legal duties to him
3. The other party, in reliance on that promise, acts in a way that alters his position and would make it a real hardship if the promisor reneges on his promise
2. One of the parties promises to release the other from some or all of the others legal duties to him
3. The other party, in reliance on that promise, acts in a way that alters his position and would make it a real hardship if the promisor reneges on his promise
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