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69 Cards in this Set
- Front
- Back
elements of an offer
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Serious intent to be legally bound, Terms must be reasonably certain, Communication to the offeree
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what is consideration
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"A typical definition is: the legal value given in return for a promise. Mutual consideration, each side having bargained for something of legal value, is what distinguishes an ordinary agreement from a legally enforceable one.
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what things can serve as consideration
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rules prohibiting pre-existing duty and past actions or events from serving as consideration.
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"A promise to do what one already has a legal duty to do does not constitute valid consideration. A promise to do something in exchange for acts or events that have already taken place is not enforceable, because it is not supported by valid consideration.
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minor has valid contract when
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• All contracts, if married, • All contracts, if emancipated
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elements of Frauds
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1. Defendant made a false statement of material fact to the plaintiff;
2. Defendant made the misstatement with an intent to deceive the plaintiff; 3. Plaintiff justifiably relied upon the misstatement in entering into the contract; 4. Plaintiff was harmed as a result of his/her reliance upon the misstatement. |
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what is a contract
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a promise or set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty
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elements of a contract
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"Agreement, Offer, Acceptance, Consideration, Capacity to contract, Legality
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minors have a voidable contract when
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Most contracts, to avoid liability any goods received must be returned within reasonable time after reaching age of majority
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minors have a void agreement when
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attempt to designate an adult agent or an attempt to buy or sell real property
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contract with mentally incomepetent persons are valid when
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all contracts if person is merely neurotic, all contracts made during temporary lucid interval, including those indused by medication
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contract with mentally incomepetent persons are voidable when
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all attempts to contract made when person can't understand nature and consequences of contract, any goods received returned within reasonble time
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contract with mentally incompetent person are void when
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all attempts to contract if person has been institutionalized or had guardian conservator appointed due to mental/emotional problems
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contracts with intoxicated persons are valid if
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the person is sober enough to understand the nature and /or consequences of the contract
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contracts with intoxicated persons are voidable if
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all attempts to contract made when person is too intoxicated to understand nature and consequence of contract, any goods received must be reutned promptly
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contracts with an intoxicated person are void if
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all attempts to contract if person has been judicially declared a victim of habitual intoxication and a guardian has been appointed
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Elements of an offer to contract
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Serious intent to be legally bound, Terms must be reasonably certain, The proposed agreement is communicated to the purported offeree
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Elements of offer – Reasonable certainty
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Identity of the parties, Subject matter of the agreement, Consideration, Time of payment, delivery or performance
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offer= assesing serious intent to be bound
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circumstances, languages, industry custom, method of communication, missing terms
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According to the law concerning mistakes made by parties to contracts, a mistake of value a. has the same effect as a significant mistake of fact. b. has the same effect as a mistake of law. c. is material, since value is always part of the essence of the bargain. d. will usually, but not always, allow the aggrieved party to avoid the contract e. none of the above
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b. has the same effect as a mistake of law.
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A valid genuineness of assent defense undermines which element of contract a. Agreement b. Consideration c. Capacity d. Legality
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a. Agreement
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James holds 1,000 pounds of perishable food in storage for Artie. Artie fails to pay for the cost of storage. James sells the food to a local grocer. This action is a. a mitigation of damages. b. an attempt to punish Artie. c. an attempt to realize a profit on the transaction. d. theft.
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a mitigation of damages.
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Compensatory damages are typically assessed against the breaching party a. to penalize that party for failing to carry out its contractual obligations b. only in contracts for the sale of good valued in excess of $500 c. to make up for the non-breaching party’s loss of the bargain d. a and c e. none of the above
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c. to make up for the non-breaching party’s loss of the bargain
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Sophie needs a pump to continue her mining operations. She orders one priced at $1,500 from Pepper. Sophie tells Pepper that if the pump isn’t received by Tuesday she will lose $5,000. Pepper ships the pump too late to reach Sophie by Tuesday. Sophie sues Pepper and recovers $5,0000. The $5,000 represents a. Compensatory damages b. Consequential damages c. Punitive damages e. Nominal damages
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b. Consequential damages
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Morton Excavating, Inc. leases a warehouse with a small office area in which to store its digging equipment and run its operations. Colorman, Inc. enters into an agreement with Morton to paint the warehouse for $3,700.00. Which if the following statements is true? a. The painting contract must be in writing because excavating changes the land. b. The painting contract must be in writing because the amount is greater than $500. c. The painting contract must be in writing because the warehouse lease is an interest in land. d. all of the above e. none of the above
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e. none of the above
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Which of the following defenses will provide a basis for rescission of a contract by the innocent party? a. Fraud b. Undue influence c. Duress d. all of the above e. a and c
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d. all of the above
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Consideration is a bargained exchange of legal value, which may consist of a. a promise b. an act, including the payment of money c. a forbearance to act d. all of the above e. a and c f. none
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d. all of the above
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Which of the following must be in writing to be enforceable? a. contract for the purchase of a house b. lease of an apartment c. gas pipeline easement d. all of the above e. none of the above
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d. all of the above
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To reimburse a party for the harm caused by a breach whose consequences were difficult to estimate when the contract was formed
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liquidated damages
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To reimburse plaintiff for indirect costs of a breach, provided they were foreseeable at the time of contract formation
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consequential damages
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To make reasonable efforts to minimize damages resulting from the defendant’s wrongful conduct
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mitigation of damages
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To make plaintiff whole, reimburse non-breaching party for direct costs of a breach of contract
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compensatory damages
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To acknowledge the plaintiff’s legal rights have been violated even though he/she/it suffered little in the way of monetary harm
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nominal damages
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To deter the defendant and those in the defendant’s position from engaging in acts such as those that resulted in plaintiff’s harm
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punitive damages
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T/F Damages that are specified in advance of breach due to the difficulty of proving them when the breach occurs are referred to as mitigated damages.
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F
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T/F When a plaintiff takes reasonable steps to reduce the extent of his/her injuries it is referred to as liquidation of damages.
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F
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T/F There is generally a significant disparity of bargaining power between the parties to an adhesion contract.
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T
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T/F The purpose of compensatory damages is to punish the defendant for conduct which is wanton, willful or malicious.
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F
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T/F A mutual mistake of fact renders the contract unenforceable by either party and will bar performance of the agreement even if both parties are still willing to perform.
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F
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T/F In Kansas, a plaintiff can recover punitive damages in a tort lawsuit when the defendant’s conduct toward the plaintiff has been merely negligent
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F
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T/F Any contract involving an interest in land must be in writing to be enforceable.
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F
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T/F In order to have a valid case of fraud, the alleged victim must actually have been deceived by the defendant’s false statement.
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T
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T/F Contracts entered into as a result of duress or undue influence are usually voidable.
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T
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T/F In Kansas, a plaintiff can recover punitive damages when the defendant’s conduct toward the plaintiff has been merely negligent.
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F
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T/F Under certain circumstances, a contract can be rescinded on the grounds of unilateral mistake.
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T
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T/F Foreseeable damages indirectly caused by a breach are called consquential damages.
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T
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Identify the contracts that must be in writing under the Statute of Frauds in order to be enforceable
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Contracts conveying interest in land
Contracts that CANNOT be performed in one year Contracts made in consideration of marriage Contracts to answer for the debt of another Contracts for sale of goods in excess of $500 |
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Consideration – how to analyze
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Test for the existence of mutual consideration as follows: Put yourself in the shoes of the offeror and ask: Am I receiving some benefit or is there some detriment to the offeree? If the answer to this question is “no,” there is no contract; if the answer is “yes”… Put yourself in the shoes of the offeree and ask: Am I receiving some benefit or is there some detriment to the offeror? If the answer to this question is “no,” there is no contract; if the answer is “yes,” the consideration element of contract is satisfied.
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Pre-existing duty / past consideration
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"A promise to do what one already has a legal duty to do does not constitute valid consideration. A promise to do something in exchange for acts or events that have already taken place is not enforceable, because it is not supported by valid consideration.
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which contracts must be in writing in order to be enforced (state precicely)
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Contracts conveying interest in land; Contracts that CANNOT be performed in one year; Contracts made in consideration of marriage; Contracts to answer for the debt of another; Contracts for sale of goods in excess of $500
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a good is
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The car is property. It is tangible, which is to say that it can be touched and seen. And it is moveable
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analysis on products liability
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defendant sold bottle in question, the product was defective, (design manufacturing) was it unreasonably dangerous, is it more dangerous than normal consumer expectations, is gladys the user, did it cause phusical harm, is Oh la la in the business of selling the product, was it substantially changed?
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punative damages
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punishing defendant and making examples of them
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compensetory
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compensate planitff for direct harm
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kansas requirements for punis
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willful (intentional) wanton (reckless) malicious, fraudulent
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consequential damages
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indirect harm caused by defendants breach of contract, must be forseeable by defendant at time of contract
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According to the law concerning mistakes made by parties to contracts, a mistake of value a. has the same effect as a significant mistake of fact. b. has the same effect as a mistake of law. c. is material, since value is always part of the essence of the bargain. d. will usually, but not always, allow the aggrieved party to avoid the contract e. none of the above
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b. has the same effect as a mistake of law.
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A valid genuineness of assent defense undermines which element of contract a. Agreement b. Consideration c. Capacity d. Legality
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a. Agreement
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James holds 1,000 pounds of perishable food in storage for Artie. Artie fails to pay for the cost of storage. James sells the food to a local grocer. This action is a. a mitigation of damages. b. an attempt to punish Artie. c. an attempt to realize a profit on the transaction. d. theft.
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a mitigation of damages.
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Compensatory damages are typically assessed against the breaching party a. to penalize that party for failing to carry out its contractual obligations b. only in contracts for the sale of good valued in excess of $500 c. to make up for the non-breaching party’s loss of the bargain d. a and c e. none of the above
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c. to make up for the non-breaching party’s loss of the bargain
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Sophie needs a pump to continue her mining operations. She orders one priced at $1,500 from Pepper. Sophie tells Pepper that if the pump isn’t received by Tuesday she will lose $5,000. Pepper ships the pump too late to reach Sophie by Tuesday. Sophie sues Pepper and recovers $5,0000. The $5,000 represents a. Compensatory damages b. Consequential damages c. Punitive damages e. Nominal damages
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b. Consequential damages
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Morton Excavating, Inc. leases a warehouse with a small office area in which to store its digging equipment and run its operations. Colorman, Inc. enters into an agreement with Morton to paint the warehouse for $3,700.00. Which if the following statements is true? a. The painting contract must be in writing because excavating changes the land. b. The painting contract must be in writing because the amount is greater than $500. c. The painting contract must be in writing because the warehouse lease is an interest in land. d. all of the above e. none of the above
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e. none of the above
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Which of the following must be in writing to be enforceable? a. contract for the purchase of a house b. lease of an apartment c. gas pipeline easement d. all of the above e. none of the above
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d. all of the above
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Which of the following defenses will provide a basis for rescission of a contract by the innocent party? a. Fraud b. Undue influence c. Duress d. all of the above e. a and c
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d. all of the above
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Consideration is
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a bargained exchange of legal value, which may consist of
a promise an act, including the payment of money a forbearance to act |
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Consideration – how to analyze
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Test for the existence of mutual consideration as follows: Put yourself in the shoes of the offeror and ask: Am I receiving some benefit or is there some detriment to the offeree? If the answer to this question is “no,” there is no contract; if the answer is “yes”… Put yourself in the shoes of the offeree and ask: Am I receiving some benefit or is there some detriment to the offeror? If the answer to this question is “no,” there is no contract; if the answer is “yes,” the consideration element of contract is satisfied.
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Elements of Fraud
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1. Defendant made a false statement of material fact to the plaintiff;
2. Defendant made the misstatement with an intent to deceive the plaintiff; 3. Plaintiff justifiably relied upon the misstatement in entering into the contract; 4. Plaintiff was harmed as a result of his/her reliance upon the misstatement. |
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The requirements of an offer are
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a) a serious intent to be legally bound by the agreement; b) reasonably certain terms; and c) communication to the offeree.
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theory of promissory estoppel, the elements of which are
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1. There must be a clear and definite promise.
2. The promisee must justifiably rely on the promise. 3. The reliance normally must be of a substantial and definite character. 4. Justice will be better served by enforcement of the promise. |