Thus, Carrie, by selling the books to Norvel, is in breach of contract. Tuan s claim that no contract existed because Lewis had given no consideration for Tuan s promise is supported by the preexisting duty rule. Because Lewis had a preexisting duty to try to win the race, a majority of courts would likely hold that Tuan was correct in arguing that no contract existed because Lewis gave no consideration. For a revocation to be effective, it must be received by the offeree. In this case, because Tanya had not received Arthur s revocation before her acceptance, the offer was still open.
Promissory estoppel is an equitable doctrine.
The Hoffmans were successful in their suit. Even though no contract was ever signed, Red Owl was held liable to them for the damages they suffered. Red Owl made a number of promises and assurances, which the Hoffmans relied and acted on to their detriment. Because they acted reasonably in relying on Red Owl, the law granted them some measure of relief. Under the doctrine of promissory estoppel, Red Owl was bound by the representations it made to the Hoffmans because these representations were such that a reasonable person would have relied on them.