Berryman v. Kmoch
Supreme Court of Kansas
559 P.2d 790 (1977)
Berryman (plaintiff) gave Kmoch (defendant), a real estate broker, an option to buy his land, with the option itself requiring $10 in consideration that Kmoch never paid. Kmoch instead spent time and effort recruiting other investors to buy the land with him. Berryman later asked to be released from the option, but the parties never reached an agreement on that. Berryman then sold the land to someone else. Only after learning of the sale did Kmoch try to exercise the option and record it, later sending a letter attempting to exercise it. Berryman sought a declaratory judgment voiding the option; the trial court sided with Berryman, and Kmoch appealed.
Whether promissory estoppel can substitute for missing consideration in an option contract when the evidence shows the promisor reasonably expected the promisee's reliance, the promisee relied as expected, and refusing enforcement would work an injustice.