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Section 13 Transactions in Property
Section 14 Gift and Estate Tax, Trusts And Exempt Organizations, Other Taxation Topics

1.2.7 Promissory Estoppel

In some cases, a promise is enforceable even if there is no consideration. This situation arises if, for example, you make a pledge to a charity, the charity relies on this pledge to make expenditure commitments and then you renege. If the charity sues you, you cannot use lack of consideration as a defense.


The charity must show that:

  1. It relied on your promise to its detriment
  2. The reliance was reasonable, and
  3. Damages resulted.