Cause of action

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Herb was the licensor for Burger Barn restaurants in the western United States.Herb wrote the following letter to his old friend Gil who lived in New York City:

“Dear Gil:

I’m sorry to hear that you’ve been unemployed for the last few months. But I think I’m in a position to help you. If you move to Phoenix, I will give you a Burger Barn franchise here. We’ll discuss the terms when you arrive.”

Signed Herb

After Gil received Herb’s letter, he sold his home in New York City and moved to Phoenix. When he arrived, Herb told him that the company was experiencing an economic downturn. As a result, Herb regretfully informed Gil that he could not offer him a franchise within the foreseeable future.

Does Gil have a cause of action against Herb?

Explanation & Answer

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