Hoffman v. Red Owl: Difference between revisions

• Red Owl Stores, Inc. = "Red Owl" = defendant
• Red Owl owned & operated large grocery stores; it also extended franchises
• "Hoffman" = plaintiffs = Mr. & Mrs. Hoffman owned a bakery in Wautoma, Wisconsin; they hoped to enter the grocery business & operate a Red Owl store

Hoffman brought suit against Red Owl for reliance damages (breach of defendants’ representations/agreements)

Trial court found for P → Ordered new trial w/ issue of damages for losses related to the sale of P’s independent grocery store, fixtures, and inventory

Both parties appealed

Here, Defendant's promise to set P up with his own store doesn’t contain all elements sufficient to give rise to enforceable contract but it can still be enforced under promissory estoppel

A promise which the promisor should reasonably expect to induce action or forbearance of a definite and substantial character on the part of the promisee and which does induce such action or forbearance is binding if injustice can be avoided only by enforcement of the promise. - Restatement (First) of Contracts § 90