Non-Traditional Contracts

Question 1

What is Promissory Estoppel?

Answer 1

Promissory Estoppel exists to enforce agreements that are otherwise unenforceable due to a lack of traditional contractual elements, and where a promisee relied on a promise to their detriment

Question 2

Essential elements to Promissory Estoppel

Answer 2

1. A promise
2. Detrimental Reliance
3. Injustice avoided by enforcing that promise

Question 3

Option contract

Answer 3

• An option contract restricts power to revoke an offer for a certain amount of time in exchange for return consideration, giving the offeree time to decide whether to accept the offer

• Offeree retains power of acceptance for a specified period of time in exchange for consideration for the option

Question 4

An offer is binding as an option contract if:

Answer 4

Is in writing and signed by the offeror

Recites purported consideration for making the offer

Proposes an exchange on fair terms within a reasonable time

OR is irrevocable by statute (e.., UCC § 2-205)