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PERFORMANCE BY VIRTUE OF ACTION IN RELIANCE

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RESTATEMENT (SECOND) OF CONTRACTS

 

 

 

 

§139. ENFORCEMENT BY VIRTUE OF ACTION IN RELIANCE

(1) A promise which the promisor should reasonably expect to induce action or forbearance

on the part of the promisee or a third person and which does induce the action or forbearance is

enforceable notwithstanding the Statute of Frauds if injustice can be avoided only by enforcement

of the promise. The remedy granted for breach is to be limited as justice requires.

(2) In determining whether injustice can be avoided only by enforcement of the promise, the

following circumstances are significant:

(a) the availability and adequacy of other remedies, particularly cancellation and restitution;

(b) the definite and substantial character of the action or forbearance in relation to the

remedy sought;

(c) the extent to which the action or forbearance corroborates evidence of the making

and terms of the promise, or the making and terms are otherwise established by clear and convincing

RESTATEMENT (SECOND) OF CONTRACTS

  p. 22

evidence;

(d) the reasonableness of the action or forbearance;

(e) the extent to which the action or forbearance was foreseeable by the promisor.

Comment:

d. Partial enforcement; particular remedies. The same factors which bear on whether any

relief should be granted also bear on the character and extent of the remedy. In particular, the remedy

of restitution is not ordinarily affected by the Statute of Frauds (see §375)....In some cases it may be

appropriate to measure relief by the extent of the promisee's reliance rather than by the terms of the

promise.