Question

Before Maria starts her first year of college, Fred promises to give her $5,000 when she graduates. She goes to college, borrowing and spending far more than $5,000. At the beginning of the spring semester of her senior year, she reminds Fred of the promise. Fred sends her a note that says, “I revoke the promise.” Is Fred's promise binding? Explain.

Answer 1

Answer: No, Fred's not promise binding.

This is a case of Promissory estoppel, where;

Promissory estoppel is the legal principle or terminology which states that a promise is enforceable by law, even if made without formal consideration, when a promissory has made a promise to a promisee who then relies on that promise to his subsequent detriment.

In certain cases where the Promisssee relied on the promise of the promissor and suffers substantial damage then some recovery can be done by treating the case as Promissory estoppel.