Business Law: Alternative Theories for Enforcing Contracts

The video tutorial explores two alternative theories for enforcing promises when no valid contract exists: quasi-contract and promissory estoppel. Quasi-contract applies when one party is unjustly enriched by another's actions without fair compensation, as illustrated by a mistaken delivery of a diamond ring. Promissory estoppel involves enforcing a promise when one party relies on it to their detriment, exemplified by a broken promise from an uncle to support an aspiring artist. Both theories aim to prevent injustice in the absence of a formal contract.

What are the two alternative theories for enforcing promises when no valid contract exists?

• Quasi-contract and promissory estoppel

• Breach of contract and promissory estoppel

• Quasi-contract and breach of contract

• Consideration and promissory estoppel

In a quasi-contract, what is the main reason a promise is enforced?

• Because a valid contract was signed

• To honor a written promise

• To prevent unjust enrichment

• Due to a verbal agreement

In the example of the diamond ring, why is the recipient required to pay for it?

• Because they ordered it

• Because they knew it was a mistake and kept it

• Because it was a promotional item

• Because it was a gift

What does promissory estoppel primarily rely on?

• A written contract

• Mutual consent

• A verbal agreement

• Detrimental reliance

What must be proven for promissory estoppel to apply?

• The promise was part of a valid contract

• The promisor knew the promisee would rely on it

• The promisee had a backup plan

• The promise was made in writing

In the example involving Uncle Vinny, what was the main consequence of his broken promise?

• The promisee received a gift

• The promisee was not affected

• The promisee experienced financial harm

• The promisee found a new job

What is the primary goal of enforcing promises under quasi-contract and promissory estoppel?

• To ensure all promises are legally binding

• To avoid injustice

• To create new contracts

• To provide financial compensation