Full question:
I was hired for a professional position; moved to state, gave up a secure position, purchased home which is now significantly devalued. I was terminated 'without cause'. They are now trying to enforce a foundation pledge I made using payroll deduction. I made payroll deduction pledge with the assumption it was a 'payroll deduction' and that I would remain employed. Form I signed was a simple piece of paper with no direction that this would continue even if employment ended. Do I have to pay this? Is a case for promissory estoppel against them with detrimental reliance possible?
- Category: Contracts
- Subcategory: Breach of Contract
- Date:
- State: Minnesota
Answer:
Gifts are generally not enforceable like contracts because they lack consideration, meaning there’s no exchange of value. Courts typically do not enforce promises to make gifts unless the recipient can show they relied on the promise to their detriment. For instance, if a charity relied on your pledge to make plans, they might enforce it.
Your rights and obligations depend on the terms of your agreement. If you consider legal action, it’s important to understand contract law and breach of contract principles:
- Contracts: Legally enforceable agreements that create obligations. They can be oral or written, but written contracts are easier to prove and usually allow for longer periods to sue.
- Breach of contract: Occurs when one party fails to fulfill their contractual duties, causing harm to the other party. Remedies include money damages, restitution, rescission, reformation, and specific performance.
- Promissory estoppel: This applies when a promise is made that induces reliance, even if no enforceable contract exists. To invoke it, you must show that the reliance was reasonable, detrimental, and that enforcing the promise is necessary to avoid injustice.
In your case, you may argue that you relied on the pledge under the assumption of continued employment. However, whether you can successfully enforce or contest the pledge will depend on the specifics of your situation and the terms of the pledge.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.