Hoffman V Redowl

447 Words2 Pages
Hoffman, v. Red Owl Stores, Inc. Supreme Court of Wisconsin 26 Wis. 2d 683; 133 N.W.2d 267; 1965 Wisc. LEXIS 1026. February 5, 1965 Plaintiff & Appellant: Hoffman Defendant & Appellee: Red Owl Stores, Inc. Facts: First, on suggestion, Hoffman bought a small grocery store to get experience and then sold it on the advice of Red Owl representative, Lukowitz and possibly lost some lucrative profits.Then, Hoffman bought a lot selected by Red Owl, moved his family to the area and sold his bakery in reliance on statement to “get money together and we are set.” A number of agreements to get the grocery store up and running failed. Hoffman rejected a final arrangement which would require his father-in-law to loan money as gift rather than a partner. Negotiations broke down. Hoffman sued Red Owl for reliance damages, lost profits, and expenses. Red Owl’s defense was that the parties had never reached agreement on essential factors necessary to create a valid contract. The jury awarded Hoffman $16,735 for the sale of the store, $2000 for the sale of the bakery, and $1250 for other expenses. Red Owl appealed Issues: 1) Does promissory estoppel require that, aside from the lack of consideration, the promise sued upon must be able to sustain a cause of action under a breach of contract? 2) Once promissory estoppel is applied, to what remedy is the plaintiff entitled? Holdings: No. Promissory estoppel does not require that the promise sued upon, aside from the lack of consideration, must be able to sustain a cause of action under a breach of contract. 2) Once promissory estoppel is applied damages should be those designed to prevent injustice, not to enforce the promises made. Reasons: For a finding of promissory estoppel, the requirements are: a promise which the promissor should reasonably expect to induce action or forbearance of a definite and
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