Section I TRUE/FALSE. (Max. 20 Points) For Each ✓ Solved

Section I TRUE/FALSE . ( Max. 20 Points ) For each

Section I. TRUE/FALSE. For each of the following statements, indicate (with a “T” or “F”) whether the statement is True or False. Each correct response is worth two (2) points.

1. The relationship between an employee and employer is one of a fiduciary nature in which the employee owes a duty of good faith, loyalty, honesty, and fair dealing to the employer.

2. A gift, including gifts of love and affection, does not generally constitute valid consideration to support a contract.

3. A unilateral contract is one that is typically made in a general way to an identifiable group of persons and invites an acceptance by the performance of a specified act or acts.

4. The doctrines of promissory estoppel and unjust enrichment allow a Court to provide the reasonable value of goods or services where the party who received the goods or services did so in the absence of a legally-binding contract and the interests of justice require such an outcome.

5. In general, the common law governs contracts for the sale of services, including professional services, and real estate interests while the Uniform Commercial Code governs merchant contracts for the sale of goods.

6. All legal, enforceable contracts for the transfer of interests in real estate are required to be in writing and formally signed by the parties pursuant to the Statute of Frauds.

7. Agreements made with minors are generally voidable by the minor and may be disavowed when the minor attains the age of majority, provided the disaffirmance occurs within a reasonable time after attaining the age of majority.

8. In general, contracts that give one party the ability to cancel the parties’ obligations in his or its sole discretion are illusory and are not enforceable due to a lack of contractual intent.

9. At common law, an acceptance that does not accept the terms of an offer exactly as made is deemed at law to be a rejection of the original offer and a counteroffer.

10. A promise not to compete with your employer for a certain term of months or years after you leave its employ is also known as a “restrictive covenant” and is enforceable by the courts in general if it is reasonable in scope.

Section II. SHORT RESPONSES. This section consists of four short answer questions each worth a maximum of five (5) points.

A. Identify the required elements of a legally valid, enforceable Contract.

B. Identify three types of agreements that the Statute of Frauds requires a writing for.

C. Identify three circumstances in which an agreement might be “voidable.”

D. Identify three types of equitable remedies that are available under contract law that may be ordered when money damages are inadequate.

Section III. MULTIPLE CHOICE. This section contains 10 multiple choice questions. Choose the response for each question that is most accurate and write its corresponding letter in the space provided.

Section IV. CASE ANALYSIS. This Section requires the student to review 1 Case Scenario and respond to two short answer questions worth a total of thirty (30) points. The written responses should demonstrate the student's knowledge of both the legal principles involved in the Scenario and critical thought in applying the legal principles to the Scenario provided.

Scenario: Jenny was her grandfather’s favorite. Upon his death, she inherited $100,000.00 and embarked on a new business venture with her inheritance. She decided to go into the apparel business and created a line of women’s sportswear bearing her brand “AngelWear.” Jenny emailed Sally with a discounted wholesale price for the items, but Sally filled the space with a competitor's apparel, leading to potential breach of contract issues.

(A) Analyze the above Scenario to determine if a valid, legally enforceable Contract existed (explaining all relevant, legal contract principles) and whether Jenny will be successful in a lawsuit against Sally and Sally’s Boutique for breach of contract or to recover her damages otherwise?

(B) What is the doctrine of “promissory estoppel” and would the application of that doctrine afford Jenny any rights in the absence of a valid, enforceable Contract with Sally?

Section V. OPTIONAL EXTRA CREDIT. Consider the following scenario and explain the most likely result. Did Ivan and Virgil have a valid, enforceable Contract? In your answer, be sure to explain whether there was a meeting of the minds between the two and the relevant, legal principles used to determine whether a meeting of the minds exists.

Paper For Above Instructions

The legal concepts surrounding contract law are essential for understanding the enforceability and implications of agreements made between parties. In Section I, we explore whether various statements about contractual relationships are true or false, according to established legal principles.

Firstly, regarding the employee-employer relationship being fiduciary, this is often deemed true as an employee is expected to act in the best interest of the employer due to the trust placed in them. The fiduciary duty entails good faith and loyalty. However, the second statement regarding gifts not forming valid consideration is accurate, as gifts, lacking exchange, do not typically support enforceable contracts (Miller, 2015).

Third, a unilateral contract, which invites acceptance through performance, confirms the notion that once a party performs an action, the offeror is bound. This assertion underscores the significance of the performance of acts as acceptance. Fourth, promissory estoppel and unjust enrichment are doctrines that provide remedies in situations lacking contracts but where fairness demands action from the courts (Gilbert, 2017).

The common law indeed governs the sale of services and the UCC covers goods, which aligns with contract law principles. Equal weight must be attributed to the necessity of writing for real estate transactions, as stipulated by the Statute of Frauds—this upholds legal enforceability. Also, minors are entitled to disaffirm agreements, a recognition of their limited capacity to contract (Eisenberg, 2020).

Next, illusory contracts, which seem binding but offer one party the unfettered right to withdraw, are not enforceable due to the absence of mutuality. This principle asserts the need for both parties to have discernible obligations under a valid contract. In acceptance matters, the common law demonstrates that a counteroffer nullifies the original offer, promoting the necessity of agreement on specific terms.

The additional sections concerning short responses and analysis illustrate further key contract components. A legally binding contract typically comprises an offer, acceptance, consideration, and mutual intent to enter into the agreement. The Statute of Frauds necessitates writing for contracts regarding real estate, the sale of goods over a certain amount, and agreements that cannot be performed within one year.

Similarly, provided examples elaborate on situations that may render agreements voidable, including agreements entered into by minors or as a result of fraud. The remedy choices in contract disputes include specific performance, injunctions, and rescission which deliver equitable solutions when monetary damages are inadequate (Norton, 2021).

Moving on to the case analysis section, Jenny's situation with Sally encapsulates critical contract principles such as the existence of an offer, acceptance, consideration, and intention. Despite Jenny's expectation of a contract emerging from her proposal, the lack of Sally's formal acceptance contravenes the agreement's enforceability. Jenny's damages arise from reliance on Sally's initial encouragement, possibly invoking promissory estoppel, which may offer her a means for recovery despite the absence of an airtight contract.

In the case of Ivan and Virgil, key questions about the clarity of the agreement regarding the credit for referrals must also be assessed. The existence of a meeting of the minds—where both parties understand the commitment— plays a central role in determining the enforceability of their agreement. The material terms concerning the amount of credit and the number of referrals must be explicitly detailed to avoid disputes.

References

• Eisenberg, M. A. (2020). Contracts. West Academic Publishing.
• Gilbert, M. (2017). Contract Law: Text, Cases, and Materials. Oxford University Press.
• Miller, R. (2015). Business Law. Cengage Learning.
• Norton, J. (2021). Business Law and the Regulation of Business. Cengage Learning.
• Cheeseman, H. R. (2020). Business Law: A Hands-On Approach. Pearson.
• Diaz, J. (2019). Contract Law in America. Cambridge University Press.
• Fried, C. (2017). Contract as Promise: A Theory of Contractual Obligation. Harvard University Press.
• Posner, R. A. (2014). Economic Analysis of Law. Wolters Kluwer.
• Twyman, J. S. (2022). The Law of Contracts. Wiley.
• Sharlot, W. M. (2020). Elements of Contract Law. Legal Publishing.