Case Scenario:

Ivan is a21 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 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.

1.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, whether any such agreement formed a bilateral or unilateral contract and to identify the material terms of any such Contract.(Max. 20 points).

2.How would you counsel Ivan if he came toyou for advice and asked whether he would have to provide a monthly credit to the three friends referred by Virgil that subsequently referred five new customers to Ivan?Would you tell Ivan that he would be legally responsible to issue $50 monthly credits to Virgil's friends for their new customer referrals?Explain why/why not using the agency and contract principles that you have learned to date.(10 points)