Reference no: EM131377890
Red Owl Stores told the Hoffman family that upon the payment of approximately $118,000 a grocery store franchise would be built for them in a new location. On the advice of Red Owl, the Hoffmans bought a small grocery store in their hometown in order to get management experience.
After the Hoffmans operated at a profit for three months, Red Owl advised them to sell the small grocery, assuring them that Red Owl would find them a larger store elsewhere. Although selling at that point would cost them much profit, the Hoffmans followed Red Owl's directions.
Additionally, to raise the required money for the deal, the Hoffmans sold their bakery business in their hometown. The Hoffmans also sold their house and moved to a new home in the city where their new store was to be located.
Red Owl then informed the Hoffmans that it would take $124,100, not $118,000, to complete the deal. The family scrambled to find the additional funds.
However, when told by Red Owl that it would now cost them $134,000 to get their new franchise, the Hoffmans decided to sue instead. Should Red Owl be held to its promises? Explain.
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Should red owl be held to its promises
: However, when told by Red Owl that it would now cost them $134,000 to get their new franchise, the Hoffmans decided to sue instead. Should Red Owl be held to its promises? Explain.
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