Chris promises Doreen $40,000 if she graduates from Eagle College. Doreen enrolls in Eagle, attends full-time for four years, and graduates. When Doreen asks Chris for $40,000, Chris says, "I don't re¬member promising you $40,000. But if there was a
promise, it's not en¬forceable, because we didn't bargain for it. And even if there was a prom¬ise that would other¬wise be enforceable, I revoke it now.". Can Doreen en¬force Chris's "prom¬ise"? Why or why not?
Chris's promise is binding, and Doreen is entitled to payment without regard to whether their per¬formance was bargained for.
Under the doctrine of promissory estoppel (or detrimental reliance), a person who relies on the promise of another may recover in the absence of con¬sideration if (1) the promise was clear and definite, (2) reliance on the promise was justifiable, (3) the promisor knew or had reason to believe that the promisee would rely on the promise, (4) the reliance induced a change of a substantial and definite character, and (5)justice would be better served by enforcement of the promise.
In this question, there was a promise on which the promisee re¬lied, the reliance was substantial and definite (the promisee went to college full-time for four years, incurring considerable ex¬penses, and graduated), and it would only be fair to en¬force the promise.
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