Reference no: EM133809011

Question

What is the doctrine of promissory estoppel and how is it used? Give a brief example.

In the following scenario, should Green Oak Stores be held to its promises? Explain.

Green Oak Stores told the Williams family that, upon receiving a payment of approximately $700,000, a convenience store franchise would be built for them in a new location. Upon the advice of Green Oak, the Williams bought a small convenience store in their hometown in order to get management experience. After the Williams operated at a profit for six months, Green Oak advised them to sell the small convenience store, assuring them that Green Oak would find them a larger store somewhere else. Although selling at that point would cost them much profit, the Williams followed Green Oak's instructions. In addition, to obtain sufficient funds for the deal, the Williams sold their gas station business in their hometown. The Williams also sold their home, and moved to a new house in the city where their new store was to be located. Green Oak then informed the Williams that it would take $800,000, not $700,000, to complete the deal. The family rushed to find enough money. However, when told by Green Oak that it would now cost them $850,000 to get their new franchise, the Williams decided to sue instead.