Problem:
George, a resident of New York, wanted to purchase a franchise for Yogurtland. He contacted the franchisor, Fred. After a series of negotiations over the telephone, Fred told George that he could purchase a Yogurtland franchise operation in California for $25,000. George quit his job, sold his home, and moved to California with his family. George also put a $10,000 deposit on a parcel of commercial property in Los Angeles, perfect for a Yogurtland store. After George had moved and purchased the property, Fred told George that there were no longer any available franchises. George sued Fred to enforce the original agreement. How should the court rule? Group of answer choices The agreement is not enforceable because there was no written contract. The agreement is not enforceable because it lacks consideration. The agreement is enforceable because Fred's offer was not revoked. The agreement is enforceable because George justifiably relied on Fred's promise.