Restatement (Second) of Contracts · Section § 86
Overview of the Restatement (Second) of Contracts § 86 which addresses promises made for a benefit received.
Source: Restatement Restatement (Second) of Contracts § § 86
A promise is enforceable if it is made in consideration of a benefit received, which can be enforced even if the benefit was conferred as a gift or if it is not supported by consideration.
This section states that a promise may be legally binding if it is made after a benefit is received, provided that the benefit was not intended as a gift. It emphasizes the enforceability of promises even when traditional consideration is absent.
Section 86 recognizes the enforceability of past consideration to the extent that it was given with the expectation of a promise.
The doctrine of promissory estoppel is often tied to the principles outlined in this section, emphasizing reliance on promises.
Illustration 1
A saves a drowning B. After rescuing him, B promises to pay A $500. The promise is enforceable despite the lack of prior agreement about payment.
Illustration 2
C finds a lost dog and takes care of it. D, the owner, later promises to pay C for those services. C can enforce the promise even though it was made after the care had begun.
This case illustrates the importance of a past benefit being insufficient for enforceability of a promise, highlighting the limitations of § 86 on past consideration.
In this case, the court held that a promise made after a benefit was conferred could be enforceable under § 86, demonstrating the applicability of past consideration under certain conditions.
Section 86 plays a critical role in contract law by allowing parties to recover on promises made for past benefits. It also fosters fairness, ensuring that individuals who benefit from another's actions cannot unjustly enrich themselves at that person's expense.