JD Next Practice Exam

What must be present for the doctrine of promissory estoppel to be applicable?

1. Invitation to Negotiate

2. Mutual Agreement

3. Offer

4. Consideration

The correct answer is: Offer

The doctrine of promissory estoppel is a legal principle that allows a party to recover on a promise, even if a legal contract does not exist, provided certain conditions are met. One of the key elements that must be present for promissory estoppel to be applicable is a clear and definite promise made by one party that the other party relies upon. This reliance typically arises in situations where the promisee has acted on the promise to their detriment. In the context of the choices presented, the presence of an offer is crucial because, in many scenarios, an offer leads to the promise that induces reliance. When one party makes a specific offer, and the other party reasonably relies on that offer to their own detriment, that reliance can give rise to a claim of promissory estoppel. The promise must be clear enough that the promisee can reasonably expect to rely on it; hence, the essential nature of an offer as a precursor to such a reliance is what positions it strongly within the framework of promissory estoppel. This contrasts with other options. An invitation to negotiate does not constitute a binding promise; mutual agreement (or a meeting of the minds) typically implies a contract rather than the unilateral reliance needed for estoppel