Which one of the following is NOT true?

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BlackTom AI · Accepted Answer

Question restatement: Which of the following statements about promissory estoppel is NOT true?

Option a: 'Promissory estoppel may be relevant where no consideration exists, particularly in the context of renegotiated agreements.' This is generally true. Promissory estoppel can enforce a promise even in the absence of consideration if reliance by the promisee is reasonable and justifiable, especially in renegotiations or assurances that create a foreseeably detrimental reliance.

Option b: 'Promissory estoppel is not part of the law of contract, but performs a complementary function.' This is misleading but often debated in framing. In many jurisdictions promissory estoppel is considered part of contract law, serving to enforce reliance-based promises. Calling it entirely outside contract law is inaccurate in most common-law systems.

Option c: 'Promissory estoppel is only relevant where a contract exists.' This statement is not true. The doctrine commonly applies to promises that do not form a contract due to lack of consideration or formalities, where reliance on the promise would be unjust without enforcement. Its relevance is not limited to existing contracts.

Option d: 'Promissory estoppel may be relevant where the formalities of making a contract have not been satisfied.' This is true in many systems; the absence of formal contract formation can still lead to enforceable reliance-based outcomes under promissory estoppel.

Overall reasoning: The incorrect statement among the options is option c, because promissory estoppel typically arises precisely in contexts where a formal contract does not exist or where there is no consideration, yet enforcement is warranted due to reasonable reliance. Options a and d describe valid contexts in which promissory estoppel can be relevant, and option b describes a characterization that is often debated but broadly reflects the idea that promissory estoppel functions within contract-law principles rather than as an entirely separate system. The key misconception in option c is the assertion that promissory estoppel only applies when a contract exists, which contradicts common-law understanding of the doctrine.

MCD2070 - T2 - 2025 Intention and Consideration Quiz

Which one of the following is NOT true?

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