Ricketts v. Scothorn

57 Neb. 51 · Nebraska Supreme Court · 1898

Facts

John C. Ricketts gave his granddaughter, Katie Scothorn, a $2,000 promissory note, telling her she wouldn't have to work anymore. Relying on this promise, Katie quit her job as a bookkeeper. Ricketts later died, and his executor refused to pay the note, claiming lack of consideration.

Issue

Can a gratuitous promise, in the form of a promissory note, be enforced when the promisee, relying on the promise, changes her position to her detriment, even if there was no initial contractual consideration?

Holding

Yes. The court affirmed the judgment for Scothorn, finding the note enforceable. The promisor's estate was estopped from denying consideration due to the granddaughter's detrimental reliance.

Rule

A promise, though initially gratuitous and lacking consideration, becomes enforceable under the doctrine of equitable estoppel if the promisor intentionally influences the promisee to change their position for the worse in reliance on the promise.

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