Question

The Rivera's owned and operated a small pharmacy in New York. They spoke to Hyman a representative of CVS Pharmacy,inc. Hyman told them that for 25,000 CVS would build them a store and stock it for them. The Rivera's gave up their store and bought a lot on which CVS was to build the store. CVS then told them the price went up to 35,000. The Rivera's borrowed the extra money, but then CVS told them the cost would be 50,000. Negotiations broke off and the Rivera's sued.

(1) Is there a contract?
(2) and if there is not is there another way the Rivera's can recover any money?

Answer 1

1. There is no contract between the two parties as the negotiation broke in the middle and no offer and acceptance were there during the entire process.

2. The principle of restitution of unjust enrichment can be used by the plaintiff in order to recover the amount that was invested by the plaintiff. As per this principle, the arrangement made for the proposed contract that broke during the negotiation, the other party has to pay the amount spent in the development of the infrastructure required in the contract.