Promissory Estoppel Case Study

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Question 2)

According to the common law legal system, a contract is an agreement enforceable by law between two or more parties, with each of the parties having the intention to create certain legal relationships between or among them. (Wex, 2008) There are four elements that makes up a valid contract, mainly Offer, Acceptance, Considerations and Intention to create legal relationships. In the case where any one of the four elements is not present, the contract or agreement would not be a valid one.
Offer is an expression of willingness to agree on certain terms and it can be done in various forms such as in writing, orally or by conduct. An offer must be concise. The offeree’s understanding of the offeror’s offer should be the same, according
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Both of their considerations are executory. In other words, there is a valid contract between them but consideration has not been executed yet. Hence, they both have existing legal relationship between them.
Secondly, Promissory Estoppel requires to have some intention to make amendments to an existing contract. However, there is no evidence showing that there is another promise take place after the contract is formed. The considerations remained as it is.
Next, Peter relied on the promise and changes his position. He told his customers and suppliers that business has been sold and should have all their business deals with ZYCO immediately. If Peter did not rely on the promise that John has given him about buying over ASBIT, he would not have told his business partners this piece of information because he will be bring bad reputation to his company and himself if the information is a false one. Peter has no reason to risk that.
Lastly, since Peter has already to certain actions such as informing his business partners that the company is changing owners, it is unfair for him to go back on his words since the information were announced to
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