Name: Caroline Deng

LBS HOMEWORK SHEET

Prepare a separate homework sheet for each case that you have been assigned to read for
class. Professor will collect these homework sheets at the end of each class session.
Name of Case in Proper Legal Citation Format
Hoffman and wife, Plaintiffs. V. Red Owl Stores, Inc.
Who is/are the plaintiff(s) (i.e. consumer, company, employee, government) and what type
of legal relief is/are the plaintiff(s) seeking?
Plaintiffs: Hoffman and wife.
He owned and operated a bakery, and wanted to obtain a supermarket franchise license with Red
Owl Stores. They said that for $18,000, Red Owl would establish Hoffman in a store. He then
sold his grocery store and paid $1000 on a lot, but then Red Owl changed the $18,000 figure to
$24,100. He was later induced to sell his grocery story and inventory in June 1961, after Red
Owl promised that he would be in a new store by fall. He then sued the company for reliance
damages, lost profits, and expenses.
What legal question must the court decide, and what is the common law rule, constitutional
provision or statute that the question will turn on?
Does promissory estoppel apply to promises, even if a clear contract wasnt made?
What is the courts reasoning? (Might include reliance on precedent, statutory
interpretation and legislative history & societal considerations)
The court concluded that injustice occurs if the plaintiffs were not granted relief or compensation
because of the failure of the defendants to keep their promise, which had induced the plaintiffs to
act to their detriment. After looking at lost rent, the lost building, and more, the court affirmed
the decision, and said that the plaintiffs should recoup the damages that they had incurred based
on the promise. However, promissory estoppel should not be used to enforce the original
promise, but rather, to recoup the damages.
What is the precedent or holding established by the courts ruling that will be followed in
subsequent similar cases? Not just what the court does such as reverses the decision of
the court below or awards damages to plaintiff but what is the proposition for which
another party might cite the case?
Promissory estoppel requires 1) a promise which the person promising the action should
reasonably expect to cause the execution of the promise, 2) the promise caused an action, and 3)
whether injustice can only be avoided by enforcement of the promise.