A recent graduate accepts a formal, written job offer from a company located in another state. The offer letter does not contain any "at-will" language or disclaimers. In reliance on this offer, the graduate sells their car, breaks their apartment lease, and moves across the country. Just days before the start date, the company calls to inform the graduate that the offer has been withdrawn due to budget cuts.

The graduate will likely recover relocation expenses and other losses under promissory estoppel because their reliance was both reasonable and foreseeable.

Question

A recent graduate accepts a formal, written job offer from a company located in another state. The offer letter does not contain any "at-will" language or disclaimers. In reliance on this offer, the graduate sells their car, breaks their apartment lease, and moves across the country. Just days before the start date, the company calls to inform the graduate that the offer has been withdrawn due to budget cuts.

The graduate will likely recover relocation expenses and other losses under promissory estoppel because their reliance was both reasonable and foreseeable.

BlackTom AI · Accepted Answer

Consider the core idea behind promissory estoppel: a promise that leads someone to take action or forgo other opportunities, where there is reasonable reliance and injustice if the promise isn’t honored.
Option True: An employer’s job offer can serve as a promise if it is sufficiently clear and definite. Here, the graduate relied on a formal written offer and incurred significant, concrete losses (selling a car, breaking a lease, relocating). Those actions suggest detriment, which is a key element of promissory estoppel. If the reliance was reasonable—moving across the country in reliance on the offer—and foreseeable to the employer, courts may allow recovery of relocation expenses and other losses to avoid an injustice.
Option False: One might challenge this by arguing that promissory estoppel requires a promise that is binding and that there was no consideration, or that an offer letter alone isn’t a binding promise in all jurisdictions. However, promissory estoppel does not require consideration; it can apply when a promise induces action in reliance. The absence of explicit at-will language does not categorically defeat enforceability, especially when the reliance is substantial and the damages are foreseeable. A counterpoint would emphasize that not every job offer gives rise to promissory estoppel, particularly if the offer lacked definiteness or if the employer never intended to be bound. Yet in this scenario, the sequence of a formal offer, significant reliance, and a foreseeable potential for loss aligns with the typical rationale for promissory estoppel.
In summary, the scenario aligns with the classic factors: a clear promise, reasonable and foreseeable reliance, and resulting detriment that would be unjust to disregard. Therefore, True is the more defensible position, while False would rest on nuanced or jurisdiction-specific limitations that aren’t strongly supported by the facts as given.

BUSFIN 3500 AU2025 (2111) Final Exam Au_1_25- Requires Respondus LockDown Browser

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