Discuss the relationship between the doctrine of promissory estoppel and the consideration requirement of contract formation

Question

What will be an ideal response?

Answer 1

The courts have enforced certain contracts when the requirements of consideration were not met, using the doctrine of promissory estoppel to do so. This doctrine requires: a) a promise justifiably relied on by the promisee; b) substantial economic detriment to the promisee: and c) an injustice that cannot be avoided except by enforcing the contract. Consider this hypothetical example. An elderly couple pledge in writing to leave $1 million to their family church for a building fund if the church raised another $1 million. The church accepted the offer, raised the matching funds, and contracted with an architect and builder. The couple died and, in their will, left the money to another church. When the family church sued the deceased's estate on the basis of the promissory estoppel doctrine, the court awarded it the full amount pledged, even though a bargained-for exchange of promises did not exist. The family church justifiably relied upon the couple's promise, causing substantial economic injury to the church, and injustice could not be avoided in any other way.