CLEP Business Law Practice Test

Question: 1 / 400

Under which condition does a promise become enforceable in promissory estoppel?

The promise must be legally binding.

The promise must induce reliance by the promisee.

In the context of promissory estoppel, a promise becomes enforceable when it induces reliance by the promisee. This legal doctrine is designed to prevent the promisor from arguing that an informal promise is not legally binding when the promisee has relied on that promise to their detriment. The essence of promissory estoppel lies in the reliance and subsequent actions taken by the promisee based on the promise.

For enforceability, it is crucial that the promisee has taken specific actions or made decisions in reliance on the promise, which leads to a change in their position. If this reliance is reasonable and foreseeable by the promisor, the court may uphold the promise to prevent injustice, even if the promise does not meet the traditional criteria for a contract, such as being in writing or involving a substantial amount. Thus, the primary element here is the reliance aspect, which is the foundation of applying promissory estoppel in legal matters.

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The promise must be in writing.

The promise must be for a substantial amount.

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