Applied Business Law 2131-3M
Individual Work 1A
Gerard, an event promoter and coordinator, made a promise to stage a concert for the benefit of Kids Care, a charitable organization dedicated to helping disadvantaged youth. In reliance on the anticipated receipts, Kids Care contracts for the construction of a residence for homeless teens. After the concert, Gerard tells Kids Care that he has decided not to donate the receipts to the organization. Is Gerard’s promise enforceable despite the lack of consideration?
Yes. The promise he made created a legal, as well as a moral, obligation making his promise enforceable despite the lack of consideration. Kids Care relied on the promise from Gerard, and such reliance did form a basis for contract rights and duties. A doctrine of promissory estoppel would have to be applied so that the promisor, Gerard, is estopped from revoking the promise. A promissory estoppel serves as a “concideration substitute” in contract law that renders certain promises otherwise lacking in consideration binding and enforceable. (http://www.lawnix.com/cases/promissory-estoppel.html, 2011). For the doctrine of promissory estoppel to be applied, a number of elements are required:
1. There must be a promise. - The promise was made from Gerard, promising stage a concert for the benefit of Kids Care.
2. The promisee must justifiably rely on the promise.- Kids Care, the promisee, can show they justifiably relied on the promise with the proof of a contract for construction of a residence for homeless teens.
3. The reliance normally must be of a substantial and definite character. - Gerard is of substantial and definite character. He is an event promoter and coordinator, not just some guy off the street.
4. Justice will be better served by the enforcement of the promise. - It is for a charitable organization, and it would be going towards building a residence for homeless teens, which would be better served by...