Detailed Answer
(b) A promise to donate money to a charity which the
charity relied upon in incurring large expenditures is a situation
involving promissory estoppel. Promissory estoppel acts as a
substitute for consideration and renders the promise enforceable.
The elements necessary for promissory estoppel are
(1) detrimental reliance on a promise, (2) reliance on the promise
is reasonable and foreseeable, and (3) damage results (injustice)
if the promise is not enforced. Answer (a) is incorrect because
the failure to enforce an employer’s promise to make a cash
payment to a deceased employee’s family will not result in damages,
and therefore, promissory estoppel will not apply. Answer
(c) is incorrect because the modification of a contract requires
consideration, unless the contract involves the sale of
goods under the UCC. Answer (d) is incorrect because an irrevocable
oral promise by a merchant to keep an offer open for sixty
days is an option contract that must be supported by consideration.
A firm offer under the UCC requires an offer signed by the
merchant.