Wiki Law School will soon be moving! Please update your bookmarks. Our future address is www.wikilawschool.org |
Drennan v. Star Paving
From wikilawschool.net. Wiki Law School does not provide legal advice. For educational purposes only.
Drennan v. Star Paving | |
Court | California Supreme Court |
---|---|
Citation | |
Date decided | December 31, 1958 |
Facts
Defendant bid on a job for Plaintiff, which accepted Defendant's bid (it was the cheapest bid). Defendant then said that its bid was a mistake and wasn't supposed to be so low. Plaintiff was forced to seek new bids.
Issues
Can Plaintiff seek, as damages, the difference between Defendant's initial winning bid and how much Plaintiff was eventually required to pay?
Holding
Yes, Plaintiff is entitled to damages. Defendant's bid is enforceable under promissory estoppel. Defendant had reason to expect Plaintiff to rely on the bid.
Rule
You will be bound to a promise if you reasonably expect that the promise will cause the promisee to act in reliance to his detriment, and it actually does cause them to act, if enforcing the promise is necessary to avoid an injustice.
Resources
Drennan v. Star Paving Co., 51 Cal. 2d 409, 333 P.2d 757 (Cal. 1958).