Consideration and Promissory Estoppel Notes

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Poole: Contract Law ANSWERS - SELF TEST – ENFORCEABILITY OF PROMISES– INTENTION TO CREATE LEGAL RELATIONS, CONSIDERATION, PROMISSORY ESTOPPEL AND DURESS 1. What is the effect of including an "honour clause" in a written agreement? (2) An "honour clause" has the effect of rebutting the normal presumption of an intention to create legal relations in a commercial agreement (1). Its effect is to render the agreement binding in honour only so that it will not be a legally binding contract. (1) 2. What is the consideration to support a unilateral promise? (1) The consideration to support a unilateral promise is performance of the act requested (Carlill v Carbolic Smoke Ball). (1) 3. Why were the chocolate wrappers held to be part of the…show more content…
(2) Yes, if it is either (a) in a deed (1) or (b) the promisor is prevented from going back on his promise because of the operation of the doctrine of promissory estoppel (1). [Note: compare the position in New Zealand which suggests that an alteration promise may be enforceable based solely on the promisee’s reliance on that promise - Antons Trawling Co Ltd v Smith, CA of New Zealand, 2003]. 8. What are the requirements to found the defence of promissory estoppel? (3) (i) Promise to forgo (alter) rights under an existing contract (1) i.e. alterations only. (ii) Intended to be acted upon and in fact acted upon (no requirement of detrimental reliance) (1) (iii) Inequitable for the promisor to go back on his promise (1). [The promise or representation must also be clear and unequivocal] 9. What is the strongest case authority for the fact that promissory estoppel only has suspensory effect? (1) Tool Metal Manufacturing v Tungsten Electric – authority of the House of Lords. (1) This is the strongest authority here and therefore there are no points for any other authority cited. 10. What is the approach of the Australian courts to the enforcement of promises, as illustrated by Waltons Stores (Interstate) v Maher? (2) The Australian courts adopt a flexible approach using estoppel in its widest sense in order to prevent “unconscionable” conduct by the promisor. (1) This means that they are not

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