Explain with an example how promissory estoppel affects the consideration requirement of contract law.
What will be an ideal response?
An important exception to consideration is promissory estoppel. According to the Restatement (Second) of Contracts, if the three elements required for estoppel are present (a promise likely to induce reliance, reliance on that promise, and injustice as a result of reliance), the promisor may be estopped from raising the defense of lack of consideration. For example, a tenant tells her landlord that she is considering remodeling her apartment and asks if he intends to allow her to renew her lease. He says yes but later refuses to honor his promise. If the tenant has actually spent a substantial sum remodeling in reliance on the landlord's promise, his promise is probably enforceable against him.
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