William Schmalz entered into an employment contract with Hardy Salt Company. The contract granted Schmalz six months' severance pay for involuntary termination but none for voluntary separation or termination for cause. Schmalz was asked to resign from his employment. He was informed that if he did not resign, he would be fired for alleged misconduct. When Schmalz turned in his letter of resignation, he signed a release prohibiting him from suing his former employer as a consequence of his employment. Schmalz consulted an attorney before signing the release and upon signing it received $4,583.00 (one month's salary) in consideration. Schmalz now sues his former employer for the severance pay, claiming that he signed the release under duress. Is Schmalz correct in his assertion?
> Helvey brought suit against the Wabash County REMC (REMC) for breach of implied and express warranties. He alleged that REMC furnished electricity in excess of 135 volts to Helvey’s home, damaging his 110-volt household appliances. This incident occurred
> St. Charles Drilling Co. contracted with Osterholt to install a well and water system that would produce a specified quantity of water. The water system failed to meet its warranted capacity, and Osterholt sued for breach of contract. Does the Uniform Co
> Mary Dobos was admitted to Boca Raton Community Hospital in serious condition with an abdominal aneurysm. The hospital called upon Nursing Care Services, Inc., to provide around-the-clock nursing services for Mrs. Dobos. She received two weeks of in-hosp
> Anna is about to buy a house on a hill. Prior to the purchase she obtains a promise from Betty, the owner of the adjacent property, that Betty will not build any structure that would block Anna's view. In reliance on this promise Anna buys the house. Is
> Minth is the owner of the Hiawatha Supper Club, which he leased for two years to Piekarski. During the period of the lease, Piekarski contracted with Puttkammer for the resurfacing of the access and service areas of the supper club. Puttkammer performed
> In March, William Tackaberry, a real estate agent for the firm of Weichert Co. Realtors (Weichert), informed Thomas Ryan, a local developer, that he knew of property Ryan might be interested in purchasing. Ryan indicated he was interested in knowing more
> Max E. Pass, Jr., and his wife, Martha N. Pass, departed in an aircraft owned and operated by Mr. Pass from Plant City, Florida, bound for Clarksville, Tennessee. Somewhere over Alabama the couple encountered turbulence, and Mr. Pass lost control of the
> Insul-Mark is the marketing arm of Kor-It Sales, Inc. Kor-It manufactures roofing fasteners and Insul-Mark distributes them nationwide. In late 1985, Kor-It contracted with Modern Materials, Inc., to have large volumes of screws coated with a rust-proofi
> On November 1, the Kansas City Post Office Employees Credit Union merged into the Kansas City Telephone Credit Union to form the Communications Credit Union (Credit Union). Systems Design and Management Information (SDMI) develops computer software progr
> Owen telephones an order to Hillary's store for certain goods, which Hillary delivers to Owen. Neither party says anything about the price or payment terms. What are the legal obligations of Owen and Hillary?
> On March 10, Tolliver Tolles, also known as Thomas Towle, delivered to Alonzo Craig and Abigail Craig the following instrument, written by him in pencil: For value received, I, Thomas Towle, promise to pay to the order of Alonzo Craig or Abigail Craig On
> Barney accepted Clark’s offer to sell to him a portion of Clark’s coin collection. Clark forgot at the time of the offer and acceptance that her prized $20 gold piece was included in the portion that she offered to sell to Barney. Clark did not intend to
> Scott, manufacturer of a carbonated beverage, entered into a contract with Otis, owner of a baseball park, whereby Otis rented to Scott a large signboard on top of the center field wall. The contract provided that Otis should letter the sign as Scott des
> Rowe advertised in newspapers of wide circulation and otherwise made known that she would pay $5,000 for a complete set, consisting of ten volumes, of certain rare books. Ford, not knowing of the offer, gave Rowe all but one volume of the set of rare boo
> On May 1, Melforth Realty Company offered to sell Greenacre to Dallas, Inc., for $1,000,000. The offer was made by telegraph and stated that the offer would expire on May 15. Dallas decided to purchase the property and sent a registered letter to Melfort
> On November 15, Gloria, Inc., a manufacturer of crystalware, mailed to Benny Buyer a letter stating that Gloria would sell to Buyer one hundred crystal “A” goblets at $100 per goblet and that “the offer would remain open for fifteen (15) days.” On Novemb
> On April 8, Crystal received a telephone call from Akers, a truck dealer, who told Crystal that a new model truck in which Crystal was interested would arrive in one week. Although Akers initially wanted $10,500, the conversation ended after Akers agreed
> Alpha Rolling Mill Corporation (Alpha Corporation), by letter dated June 8, offered to sell Brooklyn Railroad Company (Brooklyn Company) 2,000 to 5,000 tons of fifty-pound iron rails on certain specified terms and added that, if the offer was accepted, A
> Irwin Schiff is a self-styled “tax rebel” who has made a career, and substantial profit, out of his tax protest activities. On February 7, Schiff appeared live on CBS News Nightwatch, a late-night program with a viewer participation format. During the br
> Justin owned four speedboats named Porpoise, Priscilla, Providence, and Prudence. On April 2, Justin made written offers to sell the four boats in the order named for $4,200 each to Charles, Diane, Edward, and Fran, respectively, allowing ten days for ac
> On August 12, Mr. and Mrs. Mitchell, the owners of a small secondhand store, attended Alexander’s Auction, where they bought a used safe for $50. The safe, part of the Sumstad estate, contained a locked inside compartment. Both the auctioneer and the Mit
> Plaintiff, Heath Benjamin (Benjamin), found more than $18,000 in currency inside the wing of an airplane. At the time of this discovery, State Central Bank (State) owned the plane and it was being serviced by Lindner Aviation, Inc. (Lindner). Benjamin at
> On May 20, cattle rancher Oliver visited his neighbor Southworth, telling him, “I know you’re interested in buying the land I’m selling.” Southworth replied, “Yes, I do want to buy that land, especially because it adjoins my property.” Although the two m
> On July 31, Lee Calan Imports advertised a used Volvo station wagon for sale in the Chicago Sun-Times. As part of the information for the advertisement, Lee Calan Imports instructed the newspaper to print the price of the car as $1,795. However, due to a
> Lucy and Zehmer met while having drinks in a restaurant. During the course of their conversation, Lucy apparently offered to buy Zehmer’s 471.6-acre farm for $50,000 cash. Although Zehmer claims that he thought the offer was made in jest, he wrote the fo
> The Thoelkes were owners of real property located in Florida, which the Morrisons agreed to purchase. The Morrisons signed a contract for the sale of that property and mailed it to the Thoelkes in Texas on November 26. Subsequently, the Thoelkes executed
> The Brewers contracted to purchase Dower House from McAfee. Then, several weeks before the May 7 settlement date for the purchase of the house, the two parties began to negotiate for the sale of certain items of furniture in the house. On April 30, McAfe
> Walker leased a small lot to Keith for ten years at $100 a month, with a right for Keith to extend the lease for another ten-year term under the same terms except as to rent. The renewal option provided: “Rental will be fixed in such amount as shall actu
> On November 19, Hoover Motor Express Company sent to Clements Paper Company a written offer to purchase certain real estate. Sometime in December, Clements authorized Williams to accept the offer. Williams, however, attempted to bargain with Hoover to ob
> Jeff says to Brenda, “I offer to sell you my PC for $900.” Brenda replies, “If you do not hear otherwise from me by Thursday, I have accepted your offer.” Jeff agrees and does not hear from Brenda by Thursday. Does a contract exist between Jeff and Brend
> Small, admiring Jasper’s watch, asked Jasper where and at what price he had purchased it. Jasper replied, “I bought it at West Watch Shop about two years ago for around $85, but I am not certain as to that.” Small then said, “Those fellows at West are go
> Ames, seeking business for his lawn maintenance firm, posted the following notice in the meeting room of the Antlers, a local lodge: “To the members of the Antlers—Special this month. I will resod your lawn for $4.00 per square foot using Fairway brand s
> The Society National Bank (Society) agreed in a promissory note to lend U.S.A. Diversified Products, Inc. (USAD) up to $2 million in the form of an operating line of credit upon which USAD could make draws of varying amounts. The outstanding balance was
> For each of the following indorsements indicate (a) the type of indorsement and whether the indorsement is (b) blank or special, (c) restrictive or nonrestrictive, and (d) qualified or unqualified: (a) “Pay to Monsein without recourse.” (b) “Pay to Allin
> Decedent Joan Jones, a bedridden, lonely woman of eighty-six years, owned outright Greenacre, her ancestral estate. Biggers, her physician and friend, visited her weekly and was held in the highest regard by Joan. Joan was extremely fearful of suffering
> Jones, a farmer, found an odd-looking stone in his fields. He went to Smith, the town jeweler, and asked him what he thought it was. Smith said he did not know but thought it might be a ruby. Jones asked Smith what he would pay for it, and Smith said $20
> Dorothy mistakenly accused Fred's son, Steven, of negligently burning down her barn. Fred believed that his son was guilty of the wrong and that he, Fred, was personally liable for the damage, since Steven was only fifteen years old. Upon demand made by
> On February 2, Phillips induced Mallor to purchase from her fifty shares of stock in the XYZ Corporation for $10,000, representing that the actual book value of each share was $200. A certificate for fifty shares was delivered to Mallor. On February 16,
> Harris owned a farm that was worth about $600 per acre. By false representations of fact, Harris induced Pringle to buy the farm at $1,500 per acre. Shortly after taking possession of the farm, Pringle discovered oil under the land. Harris, on learning t
> Adler owes Perreault, a police captain, $500. Adler threatens that unless Perreault discharges him from the debt, Adler will disclose the fact that Perreault has on several occasions become highly intoxicated and has been seen in the company of certain d
> On September 1, Adams in Portland, Oregon, wrote a letter to Brown in New York City, offering to sell to Brown one thousand tons of chromite at $48 per ton, to be shipped by S.S. Malabar sailing from Portland, Oregon, to New York City via the Panama Cana
> Etta Mae Paulson died on January 31, 2014, leaving four children: Ken, Donald, Barbara, and Larry. She had purchased a home in Rainier in 2009, for $21,300. At that time, she had a will that she had executed in 1993, leaving all of her property to her fo
> Ronald D. Johnson is a former employee of International Business Machines Corporation (IBM). As part of a downsizing effort, IBM discharged Johnson. In exchange for an enhanced severance package, Johnson signed a written release and covenant not to sue I
> Frank Berryessa stole funds from his employer, the Eccles Hotel Company. His father, W. S. Berryessa (Berryessa), learned of his son's trouble and, thinking the amount involved was about $2,000, gave the hotel a promissory note for $2,186 to cover the sh
> Horne executed a $100,000 note in favor of R. C. Clark. On the back of the instrument was a restriction stating that the note could not be transferred, pledged, or otherwise assigned without Horne’s written consent. As part of the same transaction betwee
> At the time of her death, Olga Mestrovic was the owner of a large number of works of art created by her late husband, Ivan Mestrovic, an internationally known sculptor and artist whose works were displayed throughout Europe and the United States. By the
> Conrad Schaneman was a Russian immigrant who could neitherread nor write the English language. In 2011, Conrad deeded (conveyed) a farm he owned to his eldest son, Laurence, for $23,500, which was the original purchase price of the property in 1981. The
> (a) William tells Carol that he paid $150,000 for his farm in 2008, and that he believes it is worth twice that at the present time. Relying upon these statements, Carol buys the farm from William for $225,000. William did pay $150,000 for the farm in 20
> Glen Haumont, who owned an equipment retail business in Broken Bow, Nebraska, owed the Security State Bank more than $628,000 due to improper selling practices as well as business and inventory loans. Several times Glen tried to persuade his parents, Lee
> Division West Chinchilla Ranch advertised on television that a five-figure income could be earned by raising chinchillas with a yearly investment of only $3.75 per animal and only thirty minutes of maintenance per day. The minimum start-up investment was
> On February 10, Mrs. Sunderhaus purchased a diamond ring from Perel & Lowenstein for $6,990. She was told by the company's salesman that the ring was worth its purchase price, and she also received at that time a written guarantee from the company attest
> Iverson owned Iverson Motor Company, an enterprise engaged in the repair as well as the sale of Oldsmobile, Rambler, and International Harvester Scout automobiles. Forty percent of the business's sales volume and net earnings came from the Oldsmobile fra
> Jane Francois married Victor H. Francois. At the time of the marriage, Victor was a 52 year-old bachelor living with his elderly mother, and Jane was a 30-year-old, twice-divorced mother of two. Victor had a relatively secure financial portfolio; Jane, o
> Treasure Salvors and the State of Florida entered into a series of four annual contracts governing the salvage of the Nuestra Senora de Atocha. The Atocha is a Spanish galleon that sank in 1622, carrying a treasure now worth well over $250 million. Both
> Mr. Sewall left his car in a parking lot owned by Fitz-Inn Auto Parks, Inc. The lot was approximately 100 by 200 feet in size and had a chain link fence along the rear boundary to separate the lot from a facility of the Massachusetts Bay Transportation A
> Christine Boyd was designated as the beneficiary of a life insurance policy issued by Aetna Life Insurance Company on the life of Christine's husband, Jimmie Boyd. The policy insured against Jimmie's permanent total disability and also provided for a dea
> Dorothy and John Huffschneider listed their house and lot for sale with C. B. Property. The asking price was $165,000, and the owners told C. B. that the size of the property was 6.8 acres. Dean Olson, a salesman for C. B., advertised the property in loc
> In February, Gardner, a schoolteacher with no experience in running a tavern, entered into a contract to purchase for $40,000 the Punjab Tavern from Meiling. The contract was contingent upon Gardner's obtaining a five-year lease for the tavern's premises
> Anita and Barry were negotiating, and Anita's attorney prepared a long and carefully drawn contract, which was given to Barry for examination. Five days later and prior to its execution, Barry's eyes became so infected that it was impossible for him to r
> Nancy owed Sharon $1,500, but Sharon did not initiate a lawsuit to collect the debt within the time period prescribed by the statute of limitations. Nevertheless, Nancy promises Sharon that she will pay the barred debt. Thereafter, Nancy refuses to pay.
> Alan purchased shoes from Barbara on open account. Barbara sent Alan a bill for $10,000. Alan wrote back that 200 pairs of the shoes were defective and offered to pay $6,000 and give Barbara his promissory note for $1,000. Barbara accepted the offer, and
> Discuss and explain whether there is valid consideration for each of the following promises: (a) A and B entered into a contract for the purchase and sale of goods. A subsequently promised to pay a higher price for the goods when B refused to deliver at
> On February 5, Devon entered into a written agreement with Gordon whereby Gordon agreed to drill a well on Devon’s property for the sum of $5,000 and to complete the well on or before April 15. Before entering into the contract, Gordon had made test bori
> The Snyder Mfg. Co., being a large user of coal, entered into separate contracts with several coal companies. In each contract, it was agreed that the coal company would supply coal during the year in such amounts as the manufacturing company might desir
> George owed Keith $800 on a personal loan. Neither the amount of the debt nor George’s liability to pay the $800 was disputed. Keith had also rendered services as a carpenter to George without any agreement as to the price to be paid. When the work was c
> On September 2, 2011, Levine executed a mortgage bond under which she promised to pay the Mykoffs a preexisting obligation of $54,000. On October 14, 2014, the Mykoffs transferred the mortgage to Bankers Trust Co., indorsing the instrument with the words
> (a) Judy orally promises her daughter, Liza, that she will give her a tract of land for her home. Liza, as intended by Judy, gives up her homestead and takes possession of the land. Liza lives there for six months and starts construction of a home. Is Ju
> Harold Pearsall and Joe Alexander were friends for more than twenty-five years. About twice a week they would get together after work and proceed to a liquor store, where they would purchase what the two liked to refer as a “package”—a half-pint of vodka
> Rodney and Donna Mathis (Mathis) filed a wrongful death action against St. Alexis Hospital and several physicians, arising out of the death of their mother, Mary Mathis. Several weeks before trial, an expert consulted by Mathis notified the trial court a
> (a) Ann owed $2,500 to Barry for services Barry rendered to Ann. The debt was due June 30, 2014. In March 2015, the debt was still unpaid. Barry was in urgent need of ready cash and told Ann that if she would pay $1,500 on the debt at once, Barry would r
> Ben Collins was a full professor with tenure at Wisconsin State University in 2007. In March 2007, Parsons College, in an attempt to lure Dr. Collins from Wisconsin State, offered him a written contract promising him the rank of full professor with tenur
> Tender Loving Care, Inc. (TLC), a corporation owned and operated by Virginia Bryant, went out of business. The Secretary of State canceled its corporate charter, and a check drawn on TLC’s account made out to the Department of Human Resources (DHR) to pa
> The plaintiff, Brenner, entered into a contract with the defendant, Little Red School House, Ltd., which stated that in return for a nonrefundable tuition of $1,080, Brenner’s son could attend the defendant’s school for a year. When Brenner’s ex-wife ref
> Red Owl Stores told the Hoffman family that upon the payment of approximately $518,000 a grocery store franchise would be built for them in a new location. On the advice of Red Owl, the Hoffmans bought a small grocery store in their hometown in order to
> PLM, Inc., entered into an oral agreement with Quaintance Associates, an executive “headhunter” service, for the recruitment of qualified candidates to be employed by PLM. As agreed, PLM’s obligation to pay Quaintance did not depend on PLM actually hirin
> Baker entered into an oral agreement with Healey, the State distributor of Ballantine & Sons liquor products, that Ballantine would supply Baker with its products on demand and that Baker would have the exclusive agency for Ballantine within a certain ar
> Mrs. Laval was a patient of Dr. Leopold, a practicing psychiatrist. Dr. Leopold shared an office with two associates practicing in the same field. No receptionist or other employee attended the office. Mrs. Laval placed her coat in the clothes closet in
> Taylor assaulted his wife, who then took refuge in Ms. Harrington’s house. The next day, Mr. Taylor entered the house and began another assault on his wife. Taylor’s wife knocked him down and, while he was lying on the floor, attempted to cut his head op
> The parties entered into an oral contract in June under which the plaintiff agreed to construct a building for the defendant on a time and materials basis, at a maximum cost of $56,146, plus sales tax and extras ordered by the defendant. When the buildin
> In consideration of $1,800 paid to him by Joyce, Hill gave Joyce a written option to purchase his house for $180,000 on or before April 1. Prior to April 1, Hill verbally agreed to extend the option until July 1. On May 18, Hill, known to Joyce, sold the
> Carl, a salesperson for Smith, comes to Benson’s home and sells him a complete set of “gourmet cooking utensils” that are worth approximately $300. Benson, an eighty-year-old man who lives alone in a one-room efficiency apartment, signs a contract to buy
> On July 5, 2014, Bill and George entered into a bet on the outcome of the 2014 congressional election. On January 28, 2015, Bill, who bet on the winner, approached George, seeking to collect the $3,000 George had wagered. George paid Bill the wager but n
> Charles Leigh, engaged in the industrial laundry business in Central City, employed Tim Close, previously employed in the home laundry business, as a route salesperson. Leigh rents linens and industrial uniforms to commercial customers; the soiled linens
> The Dear Corporation was engaged in the business of making and selling harvesting machines. It sold everything pertaining to its business to the HI Company, agreeing “not again to go into the manufacture of harvesting machines anywhere in the United Stat
> Anthony promises to pay McCarthy $100,000 if McCarthy reveals to the public that Washington is a Communist. Washington is not a Communist and never has been. McCarthy successfully persuades the media to report that Washington is a Communist and now seeks
> Michael is interested in promoting the passage of a bill in the State legislature. He agrees with Christy, an attorney, to pay Christy for her services in drawing the required bill, procuring its introduction in the legislature, and making an argument fo
> Universal City Studios, Inc. (Universal) entered into a general contract with Turner Construction Company (Turner) for the construction of the Jurassic Park ride. Turner entered into a subcontract with Pacific Custom Pools, Inc. (PCP), for PCP to furnish
> Sandra and Thomas McGuire entered into a purchase-and-sale agreement for “Becca’s Boutique” with Pascal and Rebecca Tursi. The agreement provided that the McGuires would buy the store for $75,000, with a down payment of $10,000 and the balance of $65,000
> Henrioulle, an unemployed widower with two children, received public assistance in the form of a rent subsidy. He entered into an apartment lease agreement with Marin Ventures that provided “INDEMNIFICATION: Owner shall not be liable for any damage or in
> Wilkins, a Texas resident licensed by that state as a certified public accountant, rendered service in his professional capacity in Louisiana to Coverton Cosmetics Company. He was not registered as a certified public accountant in Louisiana. His service
> Richard Brobston was hired by Insulation Corporation of America (ICA) in 2005. Initially, he was hired as a territory sales manager but was promoted to national account manager in 2009 and to general manager in 2013. In 2015, ICA was planning to acquire
> Michelle Marvin and actor Lee Marvin began living together, holding themselves out to the general public as man and wife without actually being married. The two orally agreed that while they lived together they would share equally any and all property an
> Robert McCart owned and operated an H&R Block tax preparation franchise. When Robert became a district manager for H&R Block, he was not allowed to continue operating a franchise. So, in accordance with company policy, he signed over his franchise to his
> In February, Brady, a general contractor, signed a written contract with the Fulghums to build for them a house in North Carolina. The contract price of the house was $206,850, and construction was to begin in March of that year. Neither during the contr
> Albert Bennett, an amateur cyclist, participated in a bicycle race conducted by the United States Cycling Federation. During the race, Bennett was hit by an automobile. He claims that employees of the Federation improperly allowed the car onto the course
> Carolyn Murphy, a welfare recipient with very limited education and with four minor children, responded to an advertisement that offered the opportunity to purchase televisions without a deposit or credit history. She entered into a rent-to-own contract
> Tovar applied for the position of resident physician in Paxton Community Memorial Hospital. The hospital examined his background and licensing and assured him that he was qualified for the position. Relying upon the hospital’s promise of permanent employ
> Merrill Lynch employed Post and Maney as account executives. Both men elected to be paid a salary and to participate in the firm’s pension and profit-sharing plans rather than take a straight commission. Thirteen years later, Merrill Lynch terminated the
> Certain partners of the Finley Kumble law firm signed promissory notes that secured loans made to the law firm by the National Bank of Washington (NBW). When Finley Kumble subsequently declared bankruptcy and defaulted on the loans, NBW filed suit to col
> Emily was a Java programmer employed with Sun Microsystems in Palo Alto, California. Upon beginning employment, Emily signed a contract which included a noncompetition clause that prevented her from taking another Java programming position with any of fi
