Morris interviewed for a job as plant manager at Northland Bearings and was offered a two-year contract if she could relocate and start the new job within three weeks. Morris agreed. Northland promised to follow up the oral agreement with a written contract setting forth all the agreed terms, but the contract had not arrived within several days. Morris wanted to give two-weeks' notice to her present employer, so she called Northland to check on the written contract and was told it was ready to be sent to her and assured her the job was hers. She gave notice of her intention to quit her present job and moved two states away to the Northland location. When Morris arrived for her first day of work, she was told someone else with better qualifications had been found and hired for the position. Morris:
A) has no recourse since she never received a written contract, as required by the statute of frauds for a contract that cannot be performed within one year of its making.
B) has no recourse because promises are not enforceable if they do not meet all the requirements of a contract, and here Morris lacked capacity.
C) may be entitled to good-faith reliance damages under the doctrine of promissory estoppel to avoid injustice.
D) cannot enforce the contract since she had not actually started working at Northland.

Question

Quizplus · Accepted Answer

Morris may be entitled to good-faith reliance damages under the doctrine of promissory estoppel because she relied on Northland's promise to her detriment by quitting her job and relocating, even though the written contract was never received. This doctrine applies to prevent injustice when one party relies on a promise made by another.

Morris Interviewed for a Job as Plant Manager at Northland