Asked by Feisty Mochi on May 10, 2024
Verified
Morris interviewed for a job as plant manager at Northland Bearings and was offered a two-year contract if she could relocate and start the new job within three weeks. Morris agreed. Northland promised to follow up the oral agreement with a written contract setting forth all the agreed terms, but the contract had not arrived within several days. Morris wanted to give two-weeks' notice to her present employer, so she called Northland to check on the written contract and was told it was ready to be sent to her and assured her the job was hers. She gave notice of her intention to quit her present job and moved two states away to the Northland location. When Morris arrived for her first day of work, she was told someone else with better qualifications had been found and hired for the position. Morris:
A) has no recourse since she never received a written contract, as required by the statute of frauds for a contract that cannot be performed within one year of its making.
B) has no recourse because promises are not enforceable if they do not meet all the requirements of a contract, and here Morris lacked capacity.
C) may be entitled to good-faith reliance damages under the doctrine of promissory estoppel to avoid injustice.
D) cannot enforce the contract since she had not actually started working at Northland.
Statute of Frauds
A legal concept that requires certain types of contracts to be executed in writing and signed by the party to be charged, in order to be enforceable.
Promissory Estoppel
Promissory estoppel is a legal doctrine that enforces a promise made when the promisee has relied on that promise to their detriment, even if a formal contract does not exist.
Good-Faith Reliance
Acting based on the honest belief or trust in the legitimacy or accuracy of something.
- Understand the principle of promissory estoppel and how it is utilized to enforce promises not grounded in contracts, based on the reliance of the promisee.
- Distinguish between enforceable and unenforceable contracts based on legal formalities such as the statute of frauds and the statute of limitations.
Verified Answer
IA
Ibrahim AlassafMay 12, 2024
Final Answer :
C
Explanation :
Morris may be entitled to good-faith reliance damages under the doctrine of promissory estoppel because she relied on Northland's promise to her detriment by quitting her job and relocating, even though the written contract was never received. This doctrine applies to prevent injustice when one party relies on a promise made by another.
Learning Objectives
- Understand the principle of promissory estoppel and how it is utilized to enforce promises not grounded in contracts, based on the reliance of the promisee.
- Distinguish between enforceable and unenforceable contracts based on legal formalities such as the statute of frauds and the statute of limitations.