Which pair are two common examples of promissory estoppel?

Which pair are two common examples of promissory estoppel?

• A. Subcontractor bids and Change orders
• B. Teaming relationships and Change orders
• C. Subcontractor bids and Teaming relationships
• D. Subcontractor bids and Price escalation

Answer: (C)

Promissory estoppel is about enforcing a promise when someone relies on it to take action, even if there isn’t a binding contract yet. In construction practice, two common examples are subcontractor bids and teaming relationships. Subcontractor bids work this way: a owner or general contractor promises to consider a bid or to work with a particular subcontractor, and the subcontractor spends time and money preparing that bid in reliance on that promise. If the promise is withdrawn after the bid is prepared, enforcing the promise prevents injustice. Teaming relationships occur when two firms promise to collaborate on pursuing a project and share resources or opportunities. Each party commits based on that promise, and they may incur costs or make strategic moves in reliance on it. If the teaming promise collapses, promissory estoppel can help address the resulting harm. Change orders and price escalation, on the other hand, arise from existing contracts or pricing terms and don’t center on enforcing promises made without a binding agreement, so they’re not the typical examples of promissory estoppel.

Promissory estoppel is about enforcing a promise when someone relies on it to take action, even if there isn’t a binding contract yet. In construction practice, two common examples are subcontractor bids and teaming relationships.

Subcontractor bids work this way: a owner or general contractor promises to consider a bid or to work with a particular subcontractor, and the subcontractor spends time and money preparing that bid in reliance on that promise. If the promise is withdrawn after the bid is prepared, enforcing the promise prevents injustice.

Teaming relationships occur when two firms promise to collaborate on pursuing a project and share resources or opportunities. Each party commits based on that promise, and they may incur costs or make strategic moves in reliance on it. If the teaming promise collapses, promissory estoppel can help address the resulting harm.

Change orders and price escalation, on the other hand, arise from existing contracts or pricing terms and don’t center on enforcing promises made without a binding agreement, so they’re not the typical examples of promissory estoppel.