Doctrine of Consideration and Promissory Estoppel
The doctrine of consideration and promissory estoppel is a term used in contract law that deals with the bargaining conditions of the contract.3 min read
2. The Doctrine of Promissory Estoppel
3. Elements of Promissory Estoppel
4. Promissory Estoppel as a Part of Contract Law
The doctrine of consideration and promissory estoppel is a term used in contract law that deals with the bargaining conditions of the contract. In most cases, consideration is an important component of contracts. The doctrine of promissory estoppel is the exception to the rule.
The Doctrine of Consideration
The doctrine of consideration is defined by Sir Frederick Pollock as an act, or promise, of the price in which the other party is bought, and the entire agreement is then enforceable. The doctrine of consideration is important in all contracts, as it refers simply to an agreement that is legally enforceable.
However, it is important to note that there have been significant modifications to the pre-existing doctrine of consideration. The consideration previously included the following factors, which are no longer relevant in today's legal world:
- The consideration that is given for a promise is not adequate.
- The value of one promise is not equal to the value of the other. As it stands, the court will not currently compare the estimated value of each promise made.
- The doctrine does not currently take the mutual promise of equal value into account.
- Promises make it difficult to perceive value or factual benefits.
There remains a lot of debate as to whether or not the current doctrine of consideration is fair or outdated.
The Doctrine of Promissory Estoppel
The doctrine of promissory estoppel is an alternative to the doctrine of consideration. It refers to a contract that cannot be withdrawn because one party acted on the other parties' promise. In most cases, one party was harmed or served injustice because of the broken promise that they relied on. The promissory estoppel acts as a legal shield against the other's claim, even though they did not give any consideration.
The doctrine of promissory estoppel is the exception to the contract consideration rule. It implies that a contracted promise is enforceable by law even without any consideration present. It is important, however, to understand that the promissory estoppel can only be used as a legal defense and not to initiate a legal claim.
The doctrine of promissory estoppel is currently used in the United States legal system but the specific rules and regulations of it vary by state and jurisdiction. It is often viewed as a modern law and is reserved for very specific legal situations.
Elements of Promissory Estoppel
There are very specific elements that are required to make a claim in court for promissory estoppel. These include:
- A substantial detriment must have occurred to the promisor or promisee of the contract. A type of measurable loss must be present.
- The party filing the claim must have made a reasonable attempt at relying on the initial promise.
- The promissory estoppel will only be granted in court if it is established that enforcing the promise is the only method for avoiding injustice. Injustice, in this setting, refers to an unfair outcome.
The court will rely on evidence of email, text, and physical documentation of communication to establish if the promisor was aware that the promisee would rely on the promise.
If the doctrine of promissory estoppel is granted, the court will issue the appropriate damages. Damages can only come in the form of reliance damages. Reliance damages are considered the actions taken to restore the original harm that was the result of one party relying on the original promise. Expectation damages are not usually a possibility in a doctrine of promissory estoppel case.
Promissory Estoppel as a Part of Contract Law
Contract law covers the specific terms and regulations that must be present in order to make a contract legally enforceable. There are many problems that can arise out of an unenforceable contract. The doctrine of promissory estoppel is just one of the many available exceptions to the contract regulations.
Legal consideration is one of the most important components of an enforceable contract. Consideration can be in the form of money, service, or promise. Although it can be difficult to enforce non-tangible items like promises, the court can step in to enforce it, even without the presence of consideration.
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