Assume that Carol Rogers (a local millionaire) pledges to donate $500,000 to the Springfield Humane Society, which the society plans to use to build a new animal hospital. Based on Carol's promise, the society begins work on the hospital. Carol, however, reneges on her offer. In this case:

a. Carol may be sued for the money based on promissory estoppel.

b. Carol has clearly violated a firm contract.

c. Nothing can be done. Carol's donation was a gift.

d. Carol will suffer from a bad conscience, but not from any lawsuit.

Question

Business

Kallie Rivas

12 September, 00:06

Assume that Carol Rogers (a local millionaire) pledges to donate $500,000 to the Springfield Humane Society, which the society plans to use to build a new animal hospital. Based on Carol's promise, the society begins work on the hospital. Carol, however, reneges on her offer. In this case:

a. Carol may be sued for the money based on promissory estoppel.

b. Carol has clearly violated a firm contract.

c. Nothing can be done. Carol's donation was a gift.

d. Carol will suffer from a bad conscience, but not from any lawsuit.

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Answers (1)

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Isabella Stewart · Answer 1

A) Carol may be sued for the money based on promissory estoppel.

Explanation:

In contract law, promissory estoppel refers to a theory that when you make a reasonable promise but later you decide to back down, the other party may sue you in order to force you to fulfill your promise.

This theory has been upheld by the Supreme Court in Cohen v. Cowles Media Co. 501 US 663 (1991). So a reasonable promise will have the same binding effect as a contract.