1. Highlight the pertinent facts;

2. Identify the issue of law posed by the case problem. This will be in the form of a question based on a legal concept from the chapter.

3. What should be the decision in the case? (i.e. the answer to the issue).

4. The reasoning for such decision.

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 months salary) in consideration. Schmalz then sued his former employer for the severance pay.