Drennan v. Star Paving Co.

2d 409 (1958), was a California Supreme Court case in which the court held that a party who has detrimentally relied on an offer that is revoked prior to acceptance may assert promissory estoppel to recover damages.

Subsequently, Star Paving contacted him to say that its initial bid had been approximately $7000 short, and that it would not be able to complete the project for the amount of money it had previously specified.

After finding an alternative subcontractor to complete the job, Drennan sued Star Paving for the difference between its bid and the cost.

In contracts courses this case is often contrasted with James Baird Co. v. Gimbel Bros., a 1933 case with similar facts from the Second Circuit decided by Judge Learned Hand.

Hand held that an offeror was free to revoke the offer prior to acceptance; twenty-five years later, when the doctrine of promissory estoppel had found wider acceptance, Traynor held that the offer was irrevocable once the offeree had relied upon it.