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Category: Business Law
Satisfied Customers: 4634
Experience:  23 Years business & securities law, NY and FL bars. SEC all states.
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Gerald, an events promoter and a coordinator promises to stage

Customer Question

Gerald, an events promoter and a coordinator promises to stage a concert for the benefit of kids care, a charitable organization dedicated to helping disadvantaged youth. In reliance on the anticipated receipts, kids care contracts for the construction of a residence for homeless teens. After the concert, Gerald tells kids care that he has decided not to donate the receipts to the organization.
Is Gerald's promise enforceable despite the lack of consideration? Explain.
Submitted: 6 years ago.
Category: Business Law
Expert:  FLCORPLAWYER replied 6 years ago.


The promise is enforceable. The charity can argue "detrimental reliance". He made a verbal promise, he took actions in furtherance of his alleged plan to donate, the charity took actions in reliance upon his promises and actions, and as a result they were materially damaged.

Customer :



Notsure I can. This is so simple. While there was no consideration "paid" by the charity to him, they never the less had a reasonable right to rely on him, and they acted on that reliance, and they were damaged by him.