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Contract Formation Topic: Consideration & Promissory Estoppel -…
Contract Formation
Topic: Consideration
& Promissory Estoppel
Has the C given consideration in exchange for the undertaking?
Yes
The undertaking is
enforceable
in contract
No
Is the undertaking to the C contained in a deed?
Yes
No
Has the C relied on the undertaking?
Yes
C may have remedy in promissory estoppel
No
No contractual obligation.
General principles
Must move from the promisee
Need not move to promisor
Can move to 3rd party on behalf of the promisor
Need not be adequate, but must be sufficient
Sufficient (something of value) but need not be adequate (equivalent)
Need to be something real (not love...)
Must not be past
Act ≠ promise
Promise = Act
3 part exception
Existing duties
Contractual
Duty owed to a 3rd party
Shadwell v Shadwell
Scotson v Pegg
Public duty
Alteration promises
Promise to accept less
Foakes v Beer
P.E. may be an exception
Promise to pay more
Same rules as contractual
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Promissory Estoppel
Must be a clear promise from the promisor
Alteration based on reliance
Inequitable to go back on a promise
Not a cause of action/defence
Suspends legal obligation doesn’t extinguish it