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Contract Law's Two "P.E.'S": Promissory Estoppel And The Parole Evidence Rule, David G. Epstein Apr 2010

Contract Law's Two "P.E.'S": Promissory Estoppel And The Parole Evidence Rule, David G. Epstein

Law Faculty Publications

This article is about "P.E." Not the physical education class that you looked forward to in junior high school, but the two "P.E.'s" you dreaded in your first-year law school contracts class: (1) promissory estoppel and (2) the parol evidence rule.' Each is plenty complicated standing alone. This article considers what happens if the two bump into each other. More specifically, this article asks and answers the question: Should the parol evidence rule apply to promissory estoppel cases?


Hoffman V. Red Owl Stores And The Limits Of The Legal Method, Robert E. Scott Jan 2010

Hoffman V. Red Owl Stores And The Limits Of The Legal Method, Robert E. Scott

Faculty Scholarship

According to the overwhelming majority view, promissory estoppel is not an appropriate ground for legally enforcing statements made during preliminary negotiations unless there is a “clear and unambiguous promise” on which the counterparty reasonably and foreseeably relies. Bill Whitford and Stewart Macaulay were among the first scholars to note the apparent absence of such a promise in the case of Hoffman v. Red Owl Stores. Several years ago, after studying the trial record, I concluded that the best explanation for the breakdown in negotiations was the fundamental misunderstanding between the parties as to the amount and nature of Hoffmann’s …


Breach Is For Suckers, Tess Wilkinson-Ryan, David A. Hoffman Jan 2010

Breach Is For Suckers, Tess Wilkinson-Ryan, David A. Hoffman

All Faculty Scholarship

This paper presents results from three experiments offering evidence that parties see breach of contract as a form of exploitation, making disappointed promisees into “suckers.” In psychology, being a sucker turns on a three-part definition: betrayal, inequity, and intention. We used web-based questionnaires to test the effect of each of the three factors separately. Our results support the hypothesis that when breach of contract cues an exploitation schema, people become angry, offended, and inclined to retaliate even when retaliation is costly. This theory offers a useful advance insofar it explains why victims of breach demand more than similarly situated tort …


Reliance On Oral Promises: Statute Of Frauds And Promissory Estoppel, David G. Epstein Jan 2010

Reliance On Oral Promises: Statute Of Frauds And Promissory Estoppel, David G. Epstein

Law Faculty Publications

Reliance on oral promises is the basis not only for law school hypotheticals but also for real world litigation. Consider the following hypothetical based on the 1970 Supreme Court of Hawaii decision in Mcintosh v. Murphy: Tex moved from Lubbock, Texas to Oklahoma to work for Murphy Motors Chevrolet-Oldsmobile, an Okmulgee car dealership. Tex signed a lease for an apartment in Okmulgee. After two months as assistant sales manager, Murphy Motors fired Tex. Tex sued Murphy Motors alleging breach of an alleged oral agreement that she would be employed for two years. It is understandable that a jury might not …