BU231 Chapter Notes - Chapter 7: Promise This, Estoppel
Document Summary
Chapter 7 - formation of a contract: consideration and intention. If a third party, c, promises to pay a sum to a for his promise to perform already existing obligations to b, a can become liable to b and c if they fail to perform. If the creditor agrees to accept a payment from a third party in exchange for reducing the debt, they will fail if they sue the debtor. In the us, equitable estoppel has been extended to allow the injured party to force the promisor to perform the promise: this led to the cause of action and defence, injurious reliance. Injurious reliance - loss or harm suffered by a promisee who, to his detriment, relied reasonably on a gratuitous promise. Injurious reliance looks at the situation from an enforcement point of view, whereas equitable estoppel views it from the position of defence.
