Enforceability in Absence of Contract - Business Law - Lecture Slides, Slides of Commercial Law

Download Enforceability in Absence of Contract - Business Law - Lecture Slides and more Slides Commercial Law in PDF only on Docsity! Enforceability in the Absence of a Contract Docsity.com R2 § 90: Promissory Estoppel (1) A promise which the promisor should reasonably expect to induce action or forbearance on the part of the promisee or a third person and which does induce such action or forbearance is binding if injustice can be avoided only by enforcement of the promise. The remedy granted for breach may be limited as justice requires. (2) A charitable subscription or a marriage settlement is binding under Subsection (1) without proof that the promise induced action or forbearance. Docsity.com R2 § 139. Enforcement by Virtue of Action in Reliance Comment a. Relation to other rules. This Section is complementary to § 90, which dispenses with the requirement of consideration if the same conditions are met, but it also applies to promises supported by consideration. Like § 90, this Section … states a basic principle which sometimes renders inquiry unto the extent to which reliance furnishes a compelling substantive basis for relief in addition to the expectations created by the promise or to the extent to which the necessary as to the precise scope of other policies.... Docsity.com R2 § 139. Enforcement by Virtue of Action in Reliance Comment b. Avoidance of injustice. Like § 90, this Section states a flexible principle, but the requirement of consideration is more easily displaced than the requirement of a writing.... Subsection (2) lists some of the relevant factors in applying the latter requirement. Each factor relates either to the extent to which reliance furnishes a compelling substantive basis for relief in addition to the expectations created by the promise or to the extent to which the circumstances satisfy the evidentiary purpose of the Statute [of Frauds] and fulfill any cautionary, deterrent and channeling functions it may serve. Docsity.com R2 § 129. Action in Reliance (Land Contract) A contract for the transfer of an interest in land may be specifically enforced notwithstanding failure to comply with the Statute of Frauds if … the party seeking enforcement, in reasonable reliance on the contract and on the continuing assent of the party against whom enforcement is sought, has so changed his position that injustice can be avoided only by specific enforcement. Docsity.com R2 § 86: Promissory Restitution Comment b. Rationale. Although in general a person who has been unjustly enriched at the expense of another is required to make restitution, restitution is denied in many cases in order to protect persons who have had benefits thrust upon them …. [A] subsequent promise to make restitution removes the reason for the denial of relief, and the policy of unjust enrichment then prevails …. Docsity.com R2 § 86: Promissory Restitution Comment d. Emergency services and necessaries. The law of restitution in the absence of promise severely limits recovery for necessaries furnished to a person under disability and for emergency services.... A subsequent promise in such a case may remove doubt as to the reality of the benefit and as to its value, and may negate any danger of imposition or false claim. …[A]n intention to make, a gift must be shown to defeat restitution .... Docsity.com R2 § 86: Promissory Restitution Comment f. Benefit conferred pursuant to contract. By virtue of the policy of enforcing bargains, the enrichment of one party as a result of an unequal exchange is not regarded as unjust, and this Section has no application to a promise to pay or perform more or to accept less than is called for by a preexisting bargain between the same parties. Compare §§ 79, 89…. But a promise to pay in substitution for the return performance called for by the bargain may be binding under this Section. Docsity.com RR § 1. Unjust Enrichment Comment e. Unjust retention of benefit. Even where a person has received a benefit from another, he is liable to pay … only if the circumstances of its receipt or retention are such that, as between the two persons, it is unjust for him to retain it. The mere fact that a person benefits another is not of itself sufficient to require the other to make restitution therefor. Thus, one who improves his own land ordinarily benefits his neighbors to some extent, and one who makes a gift or voluntarily pays money which he knows he does not owe confers a benefit; in neither case is he entitled to restitution…. Docsity.com RR § 2. Officious Conferring of a Benefit A person who officiously confers a benefit upon another is not entitled to restitution therefor. Comment a. Officiousness means interference in the affairs of others not justified by the circumstances under which the interference takes place…. The rule denying restitution to officious persons has the effect of penalizing those who thrust benefits upon others and protecting persons who have had benefits thrust upon them (see § 112). Docsity.com RR § 116. Preservation of Another’s Health A person who has supplied things or services to another, although acting without the other's knowledge or consent, is entitled to restitution therefor from the other if (a) he acted unofficiously and with intent to charge therefor, (b) the things or services were necessary to prevent the other from suffering serious bodily harm or pain, and (c) the person supplying them had no reason to know that the other would not consent to receiving them, if mentally competent; and (d) it was impossible for the other to give consent or, because of extreme youth or mental impairment, the other's consent would have been immaterial. Docsity.com