Future Business Leaders of America (FBLA) Business Law Practice Exam

What is promissory estoppel?

1. A legal term for criminal intent

2. A principle that enforces a promise without consideration to prevent injustice

3. A method for contesting a will

4. A doctrine related to property disputes

The correct answer is: A principle that enforces a promise without consideration to prevent injustice

Promissory estoppel is a legal principle that allows a party to enforce a promise even in the absence of a formal contract, primarily to prevent injustice. This doctrine applies when one party has made a promise, and the other party has relied on that promise to their detriment. The key elements of promissory estoppel typically include a clear and definite promise, a reasonable reliance on that promise, and a situation where enforcing the promise is necessary to avoid an unjust outcome. In this context, the correct choice emphasizes the enforcement of a promise without requiring the formal legal consideration typically necessary in contract law. The essence of promissory estoppel is to protect individuals who have acted based on the belief that a promise will be honored, particularly when failing to enforce that promise would result in an unfair situation. The other options do not capture the essence of what promissory estoppel entails. Some pertain to unrelated legal concepts, such as criminal intent or estate planning, while others address property disputes, which are also distinct from the principles surrounding promissory estoppel. Understanding this legal doctrine is crucial for recognizing how commitments can be upheld in the absence of traditional contract elements, thereby providing a safeguard against unfairness in contractual relationships.