Equitable Remedies Another equitable remedy o Promissory estoppel when no consideration and thus no contract Promissory Estoppel o Three Elements Should promisor reasonably expect reliance Did the promisee reasonably rely Enforcing promise is only way to avoid injustice Promissory Estoppel Example 1 o Harvey v Dow build house on family land o Can daughter obtain ownership Contract analysis fails in this situation o Court Yes three elements of promissory estoppel are met o Three elements of promissory estoppel Example 2 o Church elderly couple promises funds o Enforceable promise o Court No contract claim but promissory estoppel can provide justice Common Law o Equitable remedies show flexibility of courts o Contract claims are more reliable o Equity for sophisticated business vs disadvantaged parties Capacity Three areas o Minors o Mentally disabled The Risks o Know when to ask questions o Void contracts automatically unenforceable o Voidable contracts one party may choose not to be bound by contract Capacity o A 17 year old buys an expensive car o May disaffirm the contract Before or after turning 18 Exception for necessaries o Can t disaffirm after minor ratifies the contract o If disaffirmed court may apply rescission Illegality Example 1 o Not always as obvious as criminal action o Architecture firm in Washington D C o Enforceable contact o Court No contract due to public policy concern over safety
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