As property manager of a 15-unit apartment block, you receive rent payments on the first of every month from each tenant. Mrs. Lone, in apartment 105, whose rent is $500 per month, lost her job and was in dire financial difficulties. You agreed to take only $400 per month. For the last ten months, she has paid only $400 a month, but you have learned that for 4 months she has had a new and even better-paying job. You are angry that she failed to tell you this and you want to sue her for the entire amount of back rent ($1,000). Which of the following arguments could she use most effectively against you?
A) Breach of contract
B) Undue influence
C) Duress
D) Promissory estoppel
E) Mistake

Question

Quizplus · Accepted Answer

Mrs. Lone could argue promissory estoppel, which is a legal principle that may prevent the plaintiff (property manager) from revoking a promise when the plaintiff should have reasonably expected the defendant (Mrs. Lone) to rely on that promise and the defendant did in fact rely on the promise to her detriment. In this case, the property manager agreed to accept $400 per month instead of the agreed-upon $500 due to Mrs. Lone's financial difficulties, and Mrs. Lone relied on that promise to make payments of $400 instead of $500 for the last ten months. Even though she had a new job for four of those months, the property manager did not communicate that the new job would affect the agreement they had made. Therefore, the property manager may not be able to sue for the entire amount of back rent.

As Property Manager of a 15-Unit Apartment Block, You Receive