SHEP Writer

Contracts — Promissory Estoppel

The Promised Stipend

A nonprofit's director, Robin, told Taylor, a college senior, "Accept our summer internship and we'll pay you a $6,000 stipend." Relying on this, Taylor turned down a paid retail job, signed a non-refundable summer sublease near the nonprofit, and let other application deadlines pass. Two weeks before the start, the nonprofit cut the stipend to zero for budget reasons, though the unpaid internship remained available. There was never a signed contract.

Law. Under Restatement (Second) of Contracts § 90, a promise is binding under promissory estoppel if (1) the promisor should reasonably expect it to induce action or forbearance, (2) it does in fact induce such action or forbearance, (3) the promisee's reliance was justifiable, and (4) injustice can be avoided only by enforcement. The remedy may be limited as justice requires, and need not be full expectation damages.

In two or three short paragraphs, analyze whether Taylor can enforce the stipend promise under promissory estoppel.

multi-paragraph · ≤ 250 words