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Kennedy Donovan
on Nov 29, 2024

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Hal promises not to foreclose on a mortgage that he holds on an office complex that Christopher owns. In reliance on this promise, Christopher spends $200,000 to remodel the complex. Which of the following is correct with regard to Hal's promise?

A) Hal's promise not to foreclose is supported by consideration.
B) Hal's promise is contractual.
C) Hal's promise may be enforced against him based upon the doctrine of promissory estoppel.
D) Hal's promise is a contract modification.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to a second party if the latter has reasonably relied on that promise to their detriment.

Foreclose

The legal process by which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset used as the collateral for the loan.

Consideration

The value (such as money, goods, or services) that is exchanged between parties in a contract.

  • Comprehend the doctrine of promissory estoppel and its application to enforce non-contractual promises based on reliance.
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Trent BuchholzDec 01, 2024
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