Hoffman v. Red Owl Stores, Inc.
Supreme Court of
26 Wis.2d 683, 133 N.W.2d 267.
Facts: Hoffman owned a bakery, but wanted to open a Red Owl
store. Red Owl assured him that he could
open one for $18,000. He started working
on opening a store, which included selling the bakery, buying and later selling
a small grocery store, paying the option on a lot in Chilton, renting a house
in Chilton, and moving to
Rule: Insofar as it’s necessary to prevent injustice, a promisor will be held to their promise if they reasonably expected that promise to induce reliance on the part of the promisee and they actually did so.
Analysis: The court finds that there was reliance and that the promise must be enforced in order to prevent injustice.
The court also goes over the damages and finds them all reasonable except for the damages related to selling the small grocery store.
Conclusion: The order of the appellate court is affirmed.