Question

The Pirates of Penzance Company promised to give Blackbeard permanent employment. Blackbeard made a living sailing on his 52-foot yacht. After thinking about the offer for two weeks, Blackbeard sold his yacht at a loss to take the job. Shortly after beginning work, he was discharged by The Pirates of Penzance, which claimed that the contract could be terminated at will. Blackbeard claimed that promissory estoppel prevented the company from terminating the contract. What is consideration, and was there consideration in this situation? Was Blackbeard correct when he claimed that promissory estoppel prevented The Pirates of Penzance Company from terminating the contract?

Answer 1

The plaintiff was promised a permanent employment with the company, and he relied on it to sell his sole source of livelihood and join the company. Company did not live up to its promise and fired him after few days.This is a case of promissory estoppel because even if the employment was at will, the company is deemed to have broken its promise, as there was no reason to fire the employee, and a period of two weeks is not good enough to judge the performance and make such quick and irrational decision of termination of job. Since the employee made a big decision of selling his yacht on reliance on the job, the contract must be enforced in favour of employee.