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Material Benefit Rule

Material Benefit Rule

Definition

A promise made in recognition of a benefit previously received by the promisor from the promisee is binding to the extent necessary to prevent injustice. A promise is not binding, however, if the promisee conferred the benefit as a gift or for other reasons the promisor has not been unjustly enriched; or to the extent the value of the promise is disproportional to the benefit.

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