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Breach of Oral Contract for Foodmart Inc.

Brian McDonald spent his time away from work on his hobby, model trains. His train set was large and consisted of rare and one-of-a-kind trains. One day, while visiting with fellow train hobbyist Harry, Brian said, "When I retire in 2 years from Foodmart, I'm going to sell my trains and spend the rest of my life traveling on real trains." Brian told Harry that he was the only person he planned to offer his trains to, because he knew Harry would take care of them. Harry said he looked forward to the day when he could buy the trains. Harry spent the next 2 years and most of his savings building a new 2,000-square foot room onto his house to make room for the trains. When Harry told Brian he was building the new room,Brian just smiled. Brian also heard that Harry borrowed money from his aunt to buy the trains. When Brian retired, he sold his trains to his neighbor, James. Harry sued Brian, claiming breach of contract, or in the alternative, for promissory estoppel. Who wins? Explain your answer.

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Brian McDonald spent his time away from work on his hobby, model trains. His train set was large and consisted of rare and one-of-a-kind trains. One day, while visiting with fellow train hobbyist Harry, Brian said, "When I retire in 2 years from Foodmart, I'm going to sell my trains and spend the rest of my life traveling on real trains." Brian told Harry that he was the only person he planned to offer his trains to, because he knew Harry would take care of them. Harry said he looked forward to the day when he could buy the trains. Harry spent the next 2 years and most of his savings building a new 2,000-square foot room onto his house to make room for the trains. When Harry told Brian he was building the new room,Brian just smiled. Brian also heard that Harry borrowed money from his aunt to buy the trains. When Brian retired, he sold his trains to his neighbor, James. ...

Solution Summary

Breach of contract for Foodmart, Inc. is analyzed. Oral contracts are analyzed.

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