Indicate Which of the Following Statements Is Correct About the Effect

question 111

Multiple Choice

Indicate which of the following statements is correct about the effect of promissory estoppel on a promisor.

• A) Promissory estoppel has no effect on a promisor because it only relates to statements of fact, not promises.
• B) Promissory estoppel must be distinguished from equitable estoppel.
• C) Promissory estoppel can be used as a defence only against a promisor who reneges on his promise.
• D) Promissory estoppel is known as injurious reliance in the United States and has the same effect in both American and Canadian law.
• E) When a victim relies on the promise and suffers injury, he can sue the promisor for compensation even where no consideration has been given in return for that promise.

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Definitions:

Issued at Discount

When a bond or other security is sold for less than its face value.

Semiannually

Referring to an event or action that takes place twice every year, often at six-month intervals.

Par

The face value of a bond or stock as stated by the issuing company, which may differ from its market value.

Face Value

The nominal value printed on a financial instrument, such as a bond or a stock certificate.