Contracts and Sales Multistate Bar Practice Exam

What is typically needed for a promise to be enforceable under promissory estoppel?

1. A formal agreement signed by the parties

2. A reasonable expectation of action or forbearance

3. A written document explicitly stating the promise

4. Clear evidence of past consideration

The correct answer is: A reasonable expectation of action or forbearance

For a promise to be enforceable under the doctrine of promissory estoppel, it is essential that there exists a reasonable expectation of action or forbearance by the promisee based on the promise made by the promisor. Promissory estoppel is designed to prevent injustice when one party relies on the promise of another to their detriment, even in the absence of a formal contract. This principle applies particularly in situations where a promise is reasonable and foreseeable, leading the promisee to take specific actions or incur detriments based on that promise. If a promise is made and the recipient relies on it, causing them to change their position (for instance, by spending money or refraining from doing something), the promisor may be estopped from denying the promise's enforceability. This aspect of reasonableness is critical in evaluating if promissory estoppel should apply, distinguishing it from other contractual principles that may require more formal arrangements or evidence, such as a signed agreement, a written document, or past consideration.