Guardian Security,Inc.,and Hedge Fund Corporation enter into an oral contract under which Guardian Security agrees to provide security services for Hedge Fund offices for as long as Hedge Fund needs them.This contract may be enforceable by
A)Guardian Security only.
B)Hedge Fund only.
C)any interested third party,such as a Hedge Fund shareholder.
D)either Guardian Security or Hedge Fund.

Question

Quizplus · Accepted Answer

Under the doctrine of promissory estoppel, an oral contract can be enforceable if one party justifiably relies on the promise of the other party and suffers a detriment as a result. Therefore, either Guardian Security or Hedge Fund may be able to enforce the oral contract. However, it is recommended to have a written contract in place to avoid litigation and ambiguity. A third party, such as a Hedge Fund shareholder, is generally not able to enforce a contract between two other parties unless there is a specific provision in the contract allowing for such enforcement.