Under what circumstance may a gratuitous promise be enforced by the courts?

Study for the PEO PPE Exam. Use multiple choice questions with hints and explanations. Prepare thoroughly for your exam!

A gratuitous promise, which is a promise made without consideration, generally lacks the enforceability that contracts possess because mutual benefit or consideration is typically necessary for a contract to be binding. However, if a gratuitous promise is made in conjunction with an existing contract, it may be enforceable. This is because the promise might be viewed as an extension or modification of the terms of that original contract, thereby bringing it under the contractual framework that allows for enforcement.

In situations where a gratuitous promise is tied to an existing contract, the courts can find that there was a mutual agreement on the terms that provides sufficient grounds for enforcement. This becomes particularly relevant when the promise can be shown to induce reliance, or if it serves to clarify or enhance the rights or duties of the contracted parties.

Options that focus on other aspects, such as public announcements or future agreements, do not inherently provide the legal grounding necessary to enforce a gratuitous promise without the context of a legally recognized contract or modification stemming from a prior agreement. The requirement for both parties to agree later does not automatically confer enforceability upon the original gratuitous promise, as there is still a lack of consideration unless further contractual elements are introduced.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy