Week 6 Defenses and Promissory Estoppel Flashcards
(71 cards)
What is the fundamental goal of promissory estoppel?
To protect a party if that party legitimately relies on another party’s promise, even if the technical requisites for contract formation have not been met.
What theory does promissory estoppel contrast with?
The formation theory (the ‘bargain theory’).
What is the reliance theory in relation to promissory estoppel?
A separate theory of contract formation that allows enforcement of promises based on reliance.
What are the two departures reflected by the doctrine of promissory estoppel?
- A departure from traditional contract formation to an alternative doctrine.
- A departure within contract law from a formal approach to modern approaches based on policy rationales.
What does Diagram 4-1 in the Contract Law Graphic Organizer depict?
Where promissory estoppel fits within the big picture of contract law.
True or False: Promissory estoppel is considered a traditional method of contract formation.
False.
Fill in the blank: Promissory estoppel may be thought of as a doctrine based on a completely separate theory of contract formation called the _______.
[reliance theory]
What does promissory estoppel allow courts to do?
Enforce promises based on reliance.
Who advocates for the more modern approaches in contract law reflected in promissory estoppel?
Lawyers, law professors, and judges.
What is a statute of fraud?
Statutes which require signed writings.
What role does promissory estoppel play in contract law?
Provides a mechanism to enforce promises that do not comply with signed writing requirements.
What is the focus of this chapter in contract law?
A range of contract defenses that enable parties to get out of contracts.
What can lead parties to assert contract defenses?
Inducement by deception, duress, or fundamentally mistaken apprehension.
What is the common thread in contract defenses discussed?
Legally cognizable ground to doubt voluntary and fully informed consent.
How do contracts affect freedom of action?
They limit contracting parties’ freedom of action.
What is ‘buyer’s remorse’?
The feeling of regret after entering a contract that turns out to be a bad deal.
What is ‘seller’s remorse’?
The feeling of regret after entering a contract that is unfavorable from the seller’s perspective.
What should courts be cautious about regarding contract defenses?
Parties’ attempts to assert defenses as a way to avoid contractual obligations.
What does the Latin phrase ‘pacta sunt servanda’ mean?
Agreements are to be observed.
What tension exists in contract law according to this chapter?
Between public policy rationales of predictability and freedom of contract and fairness concerns.
What categories are highlighted under ‘Contract Defenses’?
Deception and Mistake.
What is the significance of Diagram 5-1 in the text?
Depicts where contract defenses fit within the big picture of contract law.
What do parties often feel after realizing a contract is not beneficial?
Remorse.
Fill in the blank: Promissory estoppel is a mechanism to enforce promises that do not comply with _______.
signed writing requirements.