Written by attorneys · grounded in primary & secondary sources — see below
A party to a contract who manifests an intention to act or refrain from acting in a specified way so as to justify a promisee in understanding that a commitment has been made. The manifestation creates the promisor's undertaking and fixes the party responsible for performance under the resulting obligation.
Sources & Authorities
How it applies
Common Examples
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Transferee Bound by Lease Covenant
Global Structures leased a storage yard to Harbor Builders and later sold the property to Coastal Development. The lease required periodic resurfacing of an access road. Coastal took title and began collecting rent. Vertex Homes then took possession from Harbor. Vertex must perform the resurfacing because it stepped into privity of estate with the landlord under the original lease terms.
Noncompete Hardship Outweighs Need
Horizon Insurance bought Melissa's brokerage and required her to refrain from selling insurance statewide for twelve years. Melissa later received an offer from a competing insurer within the state. The hardship to Melissa and the resulting reduction in local competition outweighed Horizon's interest in enforcing the full restraint.
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Cases
Uniform Acts
Restatements
Casebooks
Study Supplements
Dictionaries
Benefit Runs with Transferred Interest
Global Structures leased a warehouse to Harbor Builders and promised to maintain structural supports. Global sold the property to Coastal Development. Harbor assigned its interest to Vertex Homes. Vertex may enforce the maintenance promise against Coastal because the original parties intended the benefit to run with the leasehold.
Manifestation Identifies the Promisor
Streamline News told freelance journalist Leo it would promote his newsletter if he granted exclusive first-publication rights. Leo signed the exclusivity agreement. Streamline is the promisor because it manifested the intention to perform the promotion in exchange for Leo's commitment.
Promissory Estoppel Claim Proceeds
Red Owl Stores encouraged Hoffman to sell his bakery and acquire a new store site in reliance on repeated assurances that a franchise would be granted. Hoffman incurred substantial expenses before Red Owl withdrew. Hoffman may recover under promissory estoppel because Red Owl's manifestations induced his foreseeable action.
Hoffman v. Red Owl Stores, Inc.26 Wis. 2d 683, 698, 133 N.W.2d 267, 275 (1965)
Forbearance Supplies Consideration
William Story promised his nephew $5,000 if the nephew refrained from drinking, smoking, swearing, and gambling until age twenty-one. The nephew performed the requested forbearance. Story's estate must pay because the nephew's restraint at the promisor's request constituted valid consideration.
Hamer v. Sidway124 N.Y. 538
Common questions
Frequently Asked
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Who qualifies as the promisor when multiple parties sign a contract?+
The promisor is the party whose manifestation of intention creates the commitment being enforced. When two parties exchange mutual promises, each is the promisor with respect to its own undertaking and the promisee with respect to the other's.
Supporting sources
Does the promisor remain liable after transferring its interest in leased property?+
A transferor who was obligated on an express lease promise touching and concerning the property remains liable after transfer unless the person entitled to enforce the promise grants a release. Liability resting on privity of contract survives the transfer of privity of estate.
Supporting sources
How does identifying the promisor affect a promissory estoppel claim?+
The claim requires a clear promise by the party whose manifestation induced the plaintiff's action or forbearance. Only the promisor who made the assurance can be held to it under the doctrine.
Supporting sources
When is a noncompete promise unenforceable against the promisor?+
A promise to refrain from competition is unenforceable if the promisee's need is outweighed by the hardship imposed on the promisor or by likely injury to the public. Courts weigh these factors to determine whether the restraint is reasonable.
Supporting sources
501 U.S. 663 (1991)Torts
…breach. We think, however, the matter is not this simple. Unquestionably, the promises given in this case were intended by the promisors to be kept. The record is replete with the unanimous testimony of reporters, editors, and journalism experts that protecting a confidential source of a news story is a sacred trust, a…