Summary of Channel home center, division of GRACE v. Grossman
US COURT OF AP 3rd cricut 1986
Consideration- Grossman’s promise to w/draw store from rental mkt, and the letter of intent submitted by Channel.
F: (SEE BOOK)
I: whether a property owner’s promise to a prospective tenant, pursuant to a letter of intent and negotiated in good faith, can bind the owner (for a reasonable amount of time)?
R: Yes, there is sufficient evidence supporting a finding that both parties intended to be bound by the letter of intent, and therefore the promise is binding.
A: The agreement contains a promise by Grossman to w/daw the store fr the rental market and negotiate the prop leasing transaction w/ Channel to competition. The letter of intent was executed and both parties initiated procedures towards satisfying the lease agreements. Channel developed marketing plans, etc. Both parties entered into an agreement to negotiate in good faith.