Section I.  TRUE/FALSE .  ( Max. 20 Points ) 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. __________.  An 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  ( Max. 20 Points ) This section consists of four short answer questions each worth a maximum of five (5) points.  Total points for this Section equal twenty.   A. Identify the required elements of a legally valid, enforceable Contract.  (5 Points) B. Identify three types of agreements that the Statute of Frauds requires a writing for.  (5 Points) C. Identify three circumstances in which an agreement might be “voidable.”  (5 Points) D. Identify three types of equitable remedies that are available under contract law that may be ordered when money damages are inadequate.  (5 Points) Section III.  MULTIPLE CHOICE .  ( Max. .

1. Section I. TRUE/FALSE
. (
Max. 20 Points
)
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. __________. An 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

2. 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
(
Max. 20
Points
)
This section consists of four short answer questions each worth

3. a maximum of five (5) points. Total points for this Section
equal twenty.
A. Identify the required elements of a legally valid, enforceable
Contract. (5 Points)
B. Identify three types of agreements that the Statute of Frauds
requires a writing for. (5 Points)
C. Identify three circumstances in which an agreement might be
“voidable.” (5 Points)
D. Identify three types of equitable remedies that are available
under contract law that may be ordered when money damages
are inadequate. (5 Points)
Section III. MULTIPLE CHOICE
. (
Max.
30
Points
)
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. Each correct response in this section is
worth
three
(3) points.

4. 1. ___
_
____.
Which of the following IS NOT
considered to be a legally binding offer?
A. Bill tells his adult softball team that he will pay $50 to the
first player to cut his lawn. B. A store mails its customers a
circular that advises of this week’s sale items. C. Walmart
advertises that the first 50 customers to arrive at its new store
for its Grand Opening will be entitled to purchase one of only
fifty 50” big screen TVs for $50. D. All of the above are
considered to be legally binding offers.
2. __
__
____.
Which is true of the “objective reasonable person” standard?
A. The standard is used in negligence cases but not in contract
disputes.B. The standard is used in contract disputes but not in
negligence cases.C. The standard is used in both contract
disputes and negligence cases.D. The subjective intent of the
parties governs in contract disputes and negligence cases.
3.
__
___
___.
Fred had great difficulty accepting Sara’s decision to break off
their engagement. Sara was Fred’s high school sweetheart and
the couple had dated off and on since their grammar school
days. Fred now wonders if he is entitled to the engagement ring
back. If Fred sued, what would
be the MOST LIKELY RESULT?

5. A. Sara would be permitted to keep the ring because it was a
conditional gift.B. Sara would be permitted to keep the ring
because it was given in consideration of the love she and Fred
had for many years.C. Fred would be entitled to the ring’s value
or its return as a matter of equity because the ring unjustly
enriched her at Fred’s expense.D. Fred would be entitled to the
ring’s value or its return as a matter of law because Sara
breached her promise to marry and the ring was a conditional
gift.
4. __
__
____.
Egan, a
17-year old
minor, contracted with Joe’s Computer Service to purchase a
refurbished computer “as is” for $500.00. Joe’s Computer
Service operated
illegally
out of a back room of his parent’s warehouse in a portion of the
town zoned solely for Industrial and Warehouse use. The deal
concluded between Egan and Joe’s Computer required a
downpayment of $100 from Egan to take delivery of the
computer and monthly payments of $100 thereafter for the next
four months.
On the 20th
day after Egan paid the initial payment and took delivery, the
computer was
dropped and slightly

6. damaged. Two weeks later, Egan turned 18 years old and
attained the age of majority. Five days
after his birthday,
Egan returned the
damaged
computer
to Joe’s Computer Service
and
claiming that he had no further obligation to Joe’s. Joe’s
Computer sues Egan for the remaining $400 payment. What
will the likely result be?
A. Joe wins because Egan breached their deal, partial payment
constituted partial performance, Egan was unjustly enriched and
equity demands the result in the interests of justice.B. Joe loses
because the computer was seriously defectiveand he took the
risk by extending credit to Egan and failing to get an adult co-
signer.C. Joe loses because Egan lacked the requisite
contractual intent and properly disaffirmed within a reasonable
time of reaching majority age.D. Joe wins because a Court may
award his company the reasonable value of the computer since
Egan could not return the computer in or close to its original
condition.
5. __
__
___.
Which of the following common law

7. principles
states
that a valid contract acceptance occurs when an offeree places
his/her acceptance in a
properly-addressed, stamped envelope and deposits it in the
U.S. mail?
A. The Mailbox RuleB. The Mirror RuleC. The Mutuality of
Obligation RuleD. Promissory Estoppel
6. _______.
In which of the following scenarios is an agreement properly
“voidable” within a reasonable amount of time by the aggrieved
party?
A. An owner of a company learns that he has bipolar disorder at
the time he signs a loan agreement and upon taking his newly
prescribed medication a week after the diagnosis returns the
loan monies and seeks to disaffirm the agreement.B. A
corporate President of Ajax Co. signs a deal with a supplier
over dinner to sell goods at a 50% wholesale discount to a new
retailer XYZ Corporation after having had four martinis. The
retailer’s CEO had six martinis that night and upon receipt of
the goods protests that he thought the discount was 60%. The
next day, the CEO of Ajax sends a letter disaffirming the
contract due to his being under the influence and demands the
return of the goods shipped to XYZ.C. Jack Swindler defrauds
Susie Homemaker of $1,500 promising plumbing services that
he never intended to complete or render in a competent fashion.
Jack performs a small portion of the work and demands full
payment of the agreed upon amount from Suzie and threatens to
sue if not paid immediately. Suzie pays, Jack never shows up to
complete the work and Suzie alleges that Jack defrauded her.D.
The Contracts are voidable in all of the above circumstances.

8. 7. _______.
In which of the following scenarios would the agreement MOST
LIKELY be declared to be unenforceable as an illusory
promise?
A. An oral contract for the sale of real estate.B. A written
contract for the lease of a commercial premises that contains a
one-year term and permits cancellation upon non-payment and
thirty (30) days notice by the Tenant to the Landlord.C. A
contract for professional services that permits cancellation upon
notice by one of the parties at any time in its sole discretion.D.
All of the above agreements are likely to be unenforceable as
illusory promises.
8. _______. During a furlough from her work, LuAnn maxed
out her credit card, hitting her limit of $6,000 while awaiting
her return to work. Despite her expectations, LuAnn was not
called to return to work for six months. After maxing out her
credit card, LuAnn made two minimum payments of $150.00
before defaulting on her card. When the card issuer sent LuAnn
a notice advising that there was a balance of $5,700 now due in
full with interest, LuAnn called the company, explained her
situation and made an agreement with the card issuer to make
six payments of $500 to settle her outstanding debt. When
LuAnn missed the last four payments, the card issuer demanded
full payment of the outstanding balance of $4,700 plus interest
and penalties under the original card agreement.
When the credit card company sues LuAnn for the outstanding
balance of $4,700 plus interest and penalties, what will be the
likely result?
A. The credit card company will be awarded a judgment against
LuAnn but only for $2,000 because of the company’s agreement
to settle LuAnn’s pre-existing debt.B. The credit card company
will be awarded a judgment against LuAnn for the outstanding
balance of $4,700 under the original card agreement because
there was no valid consideration given by LuAnn under the
settlement and she owed the pre-existing debt.C. The credit card

9. company will lose the case against LuAnn because it waived its
right to sue her by entering into a settlement.D. None of the
above are likely outcomes.
9. _______.
Which of the following
constitutes the proper measure of
legal,
consequential damages awarded
under the common law
for
a
breach of contract?
A. Benefit-of-the-Bargain damagesB. Incidental damagesC.
Liquidated damagesD. Exemplary damages
10. _______.
Which of the following is NOT a legal principle under the
common law that applies to an offer to contract?
A. The offeror fixes the terms of an offer and manner of
acceptance.B. The offeror may revoke a valid offer at any
time.C. The offeror must manifest an intent to be bound by the
offer.D. The offeror must communicate an offer that is clear in
order for it to be valid.
Section IV. CASE ANALYSIS (
Max. 30 Points
)

10. 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. Write your short answers in sentence
and paragraph form to each of the following questions after
reviewing and analyzing the Scenario. No plagiarism or
academic dishonesty will be tolerated. All work must be your
own and solely the result of your individual efforts.
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,” named with her grandfather in mind.
Sally, the owner of a local Boutique, loved Jenny’s new line
and encouraged Jenny to return in a few weeks when Sally
would be ordering for the next season. Jenny did so and showed
Sally several new pieces in addition to samples of her
previously demonstrated products. Sally was thrilled to see the
new pieces and indicated that she would be happy to order and
dedicate significant floor space to Jenny’s new line. After
leaving the Boutique and returning to her office, Jenny ramped

11. up production and sent Sally an e-mail that offered a discounted
wholesale price of 70%
off of
the MSRP for each piece for being
her first customer and advised that delivery can be made within
3 days. In a reply e-mail, Sally thanked her for her generosity
and told her that she would be in touch shortly. Jenny’s joy
turned into disappointment when she did not hear from Sally for
an entire week. Both ladies played phone tag for the better part
of the following week, leaving general messages for one another
until, frustrated by the situation, Jenny visited Sally’s Boutique
again. Jenny was stunned to see that the space she thought
would be dedicated to her line was filled with a competitor’s
apparel. Sally was not present at the time and Jenny left angry
at what she had seen and the significant costs she expended in
ramping up the production of her new line for Sally’s Boutique
.
(A)
Analyze the above Scenario to determine if a
valid, legally enforceable Contract existed
(explaining all relevant, legal contract principles)
and whether
Jenny
will

12. be successful in a lawsuit against Sally and Sally’s Boutique for
breach of contract or to recover her damages otherwise?
(
20 Points)
(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? (10 Points)
Section V. OPTIONAL EXTRA
CREDIT
(
Max 10 points
)
Consider the following
scenario and explain
the most likely result?
Be sure to provide your legal
reasons
and analysis
in
two or three

13. paragraphs in support of your conclusion.
Case Scenario
:
Ivan is a 21 year-old owner of a landscaping and lawn service
business in Greenville, NJ. Virgil is an adult customer of
Ivan’s services and had been for six months. As the winter
season approached, Ivan spoke to Virgil about drumming up
business in Virgil’s neighborhood for his new snow removal
division. Ivan told Virgil that he will take $10 off Virgil’s
monthly landscaping bill for six months, starting in March of
2021, for each new customer that Virgil refers to Ivan for snow
removal at Ivan's snow job rate of $100 per house. Virgil tells
Ivan that he is willing to help out and use his best efforts to do
so. Ivan then handed Virgil thirty fliers that bore Ivan's name,
phone number, some marketing graphics and a general
description of the snow removal services offered at the $100
rate discussed. The flyer also advised of a “
New Customer Discount Available
.” Virgil thanks Ivan for his anticipated assistance and the two
men quickly conclude their business in a cordial manner.
Virgil gave Ivan's flyers to twenty of his friends and neighbors
and spoke favorably to them about Ivan's new service. Fifteen
of them agreed to use Ivan for their snow removal services. In
the winter months, 12 of these friends/neighbors did use Ivan
for snow removal on at least one occasion. Ivan performed the
initial services requested by Virgil's friends and neighbors and
gave them all his discounted, new customer rate of $75 for their
initial snow removal job. Ivan also advised each new customer
that his standard rate of $100 would apply to their second and
subsequent snow removal jobs when requested. Only 3 of
Virgil's referrals used Ivan a second time. Ivan charged these
three referral customers 100 for their second and subsequent

14. snow removal jobs. All three of these referral customers
offered the flyer that Virgil gave them to their friends and
families when Virgil told them that Ivan agreed to give him a
$10 discount off the price for services for six months for each
new customer he referred to Ivan. As a result of the referrals
from these 3 friends of Virgil, Ivan received five new repeat
customers.
In February 2021, Virgil caught up with Ivan and asked him to
begin his regular landscaping services again in March. During
the course of the conversation, Ivan thanked Virgil for his
assistance and referral of three new customers to him, and
gratefully advised Virgil that he would receive a credit on his
monthly landscape bill in the amount of $30 for the next six
months as promised. Virgil was surprised to hear that he would
receive only $30 off his monthly landscaping services and
protested to Ivan that he sent him more than ten referral
customers for which Ivan provided snow removal services.
Virgil told Ivan that he expected to receive a full $10 credit off
of his Spring/Summer services for six months for every snow
removal job that Ivan performed for all 12 of the referrals that
Virgil provided and Ivan serviced. Ivan sarcastically said
“yeah, right! You just want free services from me” and
exclaimed "that was certainly not part of any deal that we had."
Both men became angry at one another, exchanged hostile
words and Virgil walked away frustrated and outraged that he
would not get the full amount of the credits that he anticipated.
Just before leaving, however, Virgil threatened to hire another
landscaper, to sue Ivan for breach of contract and to recover the
amount of a monthly credit of at least $120 for the
Spring/Summer months, as well as any difference in price
should the new landscaper charge him in excess of $100 per
month for such services.
Did Ivan and Virgil have a valid, enforceable Contract? In your
answer, be sure to explain whether there was a meeting of the

15. minds between the two
and the relevant, legal principles used to determine whether a
meeting of the minds exists, whether any such agreement
formed a bilateral or unilateral contract and to identify the
material terms of any such Contract.