Asked by Teyanna Meshae on May 11, 2024
Verified
Laura promises to pay Stuart "a reasonable amount" for repairing her car.Stuart sends Laura a $500 invoice and Laura sends Stuart a $350 check marked "payment in full." There is an agreement created by promissory estoppel.
Promissory Estoppel
A legal principle that prevents a party from withdrawing a promise made to a second party if the latter has reasonably relied on that promise to their detriment.
Reasonable Amount
An amount that is fair and moderate, not excessive or extreme.
- Become familiar with the legal aspects of promissory estoppel and its relevance to consideration-free agreements.
Verified Answer
DC
David Cruz- AraujoMay 14, 2024
Final Answer :
False
Explanation :
While promissory estoppel may create a legal obligation based on a promise, in this case there is no clear promise made by Laura to pay a "reasonable amount" and no reliance by Stuart on such a promise. Furthermore, Laura's check marked "payment in full" creates a legal concept known as accord and satisfaction, which means that Stuart has accepted the $350 payment as full and final settlement of the debt.
Learning Objectives
- Become familiar with the legal aspects of promissory estoppel and its relevance to consideration-free agreements.
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