Anthony Maglica founded a machine shop business called Mag Instruments in 1955. In 1971, Claire Hallasz informally helped Anthony run the business. Despite the fact that Claire worked with Anthony to build up Mag Instruments, which was incorporated in 1974, all the shares of the corporation were issued upon formation to Anthony as President and Company Founder. Claire as Secretary was paid 1000/month from January 1, 1974 onward.

Starting from January 1, 1978, the business began manufacturing flashlights and, thanks to the hard work and ideas of Claire, the business boomed to be valued at 200,000,000 on January 1, 1992, when, as a result of a dispute between them, Anthony fired Claire. Claire filed suit for compensation utilizing a variety of legal theories as a cause of action for her case against Anthony.

Plaintiffs attorney demonstrated that the business grew by 84,000,000 because of the hard work and initiative of Claire. Had Anthony hired a professional new product developer, it would have cost him no less than 4000/month.

1. Suppose that Claire worked for Anthony as a contractor, from the formation of the corporation in 1974 onward, upon receipt of a letter of intent[1] that Anthony provided Claire (that Claire never acknowledged) to provide product development services

1. without ever subsequently negotiating a draft agreement. Would Claire be entitled to recover on the basis of breach of contract or unjust enrichment? Explain briefly. [1/2 mark]
2. while subsequently negotiating a draft agreement. Would Claire be entitled to recover on the basis of breach of contract or unjust enrichment? Explain briefly. [1/2 mark]

2. Suppose that Claire cohabited with (but was not married to) Anthony, who made promises to Claire contained in I (above). [2 marks]
3. Explain which rebuttable presumption would apply.
4. After having identified the correct rebuttable presumption to use [RP#1 or RP#2]:
5. Which party is prejudiced by the presumption?
6. What evidence, if any, can that party present to rebut that rebuttable presumption?