Which of the following statements is correct with respect to promissory estoppel (equitable estoppel)?
A) Where Barbra relies on Raylene's promise and suffers a loss, Barbra can sue Raylene for compensation even though the promise was gratuitous.
B) Where Hank and Jim have a contract and Hank releases Jim from part of Jim's obligation, Jim can use that release, even though it was given without consideration, as a defence if Hank sues for breach of contract.
C) Promissory estoppel means that Donna cannot revoke her offer where she has promised to hold it open for a specific period of time.
D) Where Able requests services from Cain, the doctrine of promissory estoppel requires a reasonable price to be paid even where no specific amount was agreed.
E) Promissory estoppel refers to the principle that, where a document is in writing and under seal, it is enforceable even where there is no consideration.

Question

Quizplus · Accepted Answer

Promissory estoppel allows a party to enforce a promise even when certain legal formalities (like consideration) are not present, if they have relied on that promise to their detriment. In the scenario with Hank and Jim, if Hank releases Jim from part of his obligation without consideration and Jim relies on that release, promissory estoppel can prevent Hank from later suing Jim for not fulfilling the original terms, making choice B correct. Choices A, C, D, and E describe situations that either misrepresent the concept of promissory estoppel or apply legal principles not directly related to promissory estoppel.

Which of the Following Statements Is Correct with Respect to Promissory