Ralph, knowing that his son, Ed, desires to purchase a tract of land, promises to give him the $25,000 he needs for the purchase. Ed, relying on this promise, buys an option on the tract of land. Now Ralph wants to rescind his promise to Ed. Will Judy be required to give her daughter, Liza, the tract of land on which she has started to build, and will Ralph be required to give his son, Ed $25,000 to purchase a tract of land. Can Ralph rescind his promise?

Respuesta :

Answer:

(a) Yes, Judy will be required to give her daughter, Liza, the tract of land on which she has started to build. Therefore, Judy cannot rescind his promise to Liza.

(b) No, Ralph will NOT be required to give his son, Ed $25,000 to purchase a tract of land. Therefore, Ralph can rescind his promise.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

(a) Judy orally promises her daughter, Liza, that she will give her a tract of land for her home. Liza, as intended by Judy, gives up her homestead and takes possession of the land. Liza lives there for six months and starts construction of a home. Now Judy wants to rescind his promise to Liza.

(b) Ralph, knowing that his son, Ed, desires to purchase a tract of land, promises to give him the $25,000 he needs for the purchase. Ed, relying on this promise, buys an option on the tract of land. Now Ralph wants to rescind his promise to Ed.

Will Judy be required to give her daughter, Liza, the tract of land on which she has started to build, and will Ralph be required to give his son, Ed $25,000 to purchase a tract of land. Can Ralph rescind his promise?

Explanation of the answers is now provided as follows:

Each of the two cases will be decided based on the principle promissory estoppel.

Promissory estoppel refers to the legal principle that states that despite that there us formal consideration attached to a promise, it is still enforceable by law if the promise from the promisor makes the promisee to rely on the promise to his subsequent detriment.

(a) Will Judy be required to give her daughter, Liza, the tract of land on which she has started to build?

Yes, Judy will be required to give her daughter, Liza, the tract of land on which she has started to build.

The is because Liza has relied on the promise from Judy to her subsequent detriment by giving up her up her homestead and already starts construction of a home. Since the Judy promise from Judy induces the action of Liza that is reasonably expected by Judy, he cannot rescind his promise to Liza.

(b) Will Ralph be required to give his son, Ed $25,000 to purchase a tract of land. Can Ralph rescind his promise?

No, Ralph will NOT be required to give his son, Ed $25,000 to purchase a tract of land.

This is because there is Ed has not taken any definite and substantial action to justify that he has relied on the promise from Ralph to his subsequent detriment. It may not be possible to construe the purchase of an option on the tract of land by Ed as a definite and substantial action. Therefore, Ralph can rescind his promise.