MBE Rules · Contracts
Detrimental reliance making offer irrevocable
Restatement §87(2)
The rule
An offer becomes irrevocable to the extent necessary to avoid injustice if the offeror should reasonably expect, and does induce, substantial reliance by the offeree before acceptance.
In plain English
If someone makes an offer and the other person relies on it in a big way before accepting, the offer can't be taken back to prevent unfairness.
Worked example
The defendant offers to sell land to the buyer. The buyer spends money on surveys and permits based on this offer. The offer becomes irrevocable to prevent injustice to the buyer.
Memory hook
Reliance Locks Offers: Trust leads to freeze. If offeree relies substantially, offeror can't revoke.
The trap
Students think: Any reliance makes an offer irrevocable. Wrong, because reliance must be substantial and foreseeable. The actual test is reasonable expectation and inducing reliance.
How examiners test it
The MBE loves: offeree begins performance based on offer. Trap: students assume any start makes offer irrevocable. Test: was reliance substantial and foreseeable?
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