Reilley wants to open a McHenry Roast Chicken franchise in her hometown of Manchester.Arden,a representative of McHenry,told Reilley,"If you will buy a lot and build a building in River City,we will give you a franchise." Reilley bought the lot and built the building as instructed,only to discover that McHenry had awarded the franchise to someone else.McHenry claims no liability to Reilley since there was no consideration.Which statement is most accurate?
A) McHenry is not liable to Reilley since there is no consideration.
B) McHenry is not liable to Reilley since there is past consideration.
C) McHenry is liable to Reilley since adequate consideration is given by both parties.
D) McHenry is liable to Reilley based on the concept of promissory estoppel.

Question

Quizplus · Accepted Answer

McHenry made a promise to Reilley which Reilley relied upon and acted upon by buying a lot and building a building. This reliance created a legal obligation through the concept of promissory estoppel, even if there was no consideration. McHenry could be held liable for breach of contract under the theory of promissory estoppel.

Reilley Wants to Open a McHenry Roast Chicken Franchise in Her