Question

Marketing Solutions Inc. promises to employ Niki as a software engineer. In reliance on the promise, Nikiquits her job with Online Ad Company, but Marketing Solutions does not hire her. Most likely, Marketing Solutions is
A) liable to Niki under the concept of rescission and new contract.
B) liable to Niki under the doctrine of promissory estoppel.
C) liable to Niki under the preexisting duty rule.
D) not liable to Niki

Answer 1

Answer:

B) liable to Niki under the doctrine of promissory estoppel.

Explanation:

In contract law, promissory estoppel refers to a theory that when you make a reasonable promise but later you decide to back down, the other party may sue you in order to force you to fulfill your promise.

This theory has been upheld by the Supreme Court in Cohen v. Cowles Media Co. 501 US 663 (1991). So a reasonable promise will have the same binding effect as a contract.