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Promissory Estoppel

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Promissory Estoppel

Brian McDonald and Harry Ledman are co-workers at Food mart. They both love model trains and have them as a hobby. While having a casual discussion about the model trains, Brian tells Harry that after he retires he wants to sell his trains and travel. Brian mentions to Harry, “You are the only person I plan to offer my trains to, because I know that you would take care of them.” This statement set the stage for a verbal contract with a pending date of sale, the date of sale being Brian’s retirement. Harry made plans to purchase the train station by saving money, borrowing money and adding on to his home to prepare for the train set. Brian was aware of all the plans that Harry was making. Upon Brian’s retirement he told the train set to his neighbor, James. Harry sued Brian, claiming breach of contract, or in the alternative, for promissory estoppel. Harry’s claims of promissory estoppel are based on the grounds that a promisor (Brian) made a gratuitous promise (to sell his train set) to a promise (Harry). Harry relied on the promise and made purchases to the fact. Brian was aware of all the purchases that Harry was making and he never said anything to Harry to suggest that he had changed his mind.

Harry will ask the judge for compensation for all he spent preparing for the train set, the cost of building a 2,000 sq. ft. addition to his home and the loan from aunt Ida the 2,000 square foot room that Harry built for the model train collection and the money that Harry borrowed from his aunt to purchase the model train collection. The judge or jury will rule in Harry’s favor because Brian entered into the contract with Harry and falsely continued to lead Harry on about the selling Harry the train collection. Brian was aware that Harry was making plans to purchase the collection and never alluded to the fact that he may have other potential buyers of the train set. The judge or jury will see that at no time did Brian suggest that he had changed his mind about selling Harry the train set or that he should stop with any of the plans he knew Harry was making. He continued to sit back and watch Harry spend substantial amounts of money on the train collection that he said he would sell him.Brian chose to stay quiet and continue to let Harry take on the debt of building the new room and borrowing the money for the train collection.

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