BLAW 3201 LSU Fry Exam 3 Cases
Questions Solved Correctly 2026
Updated.
Vanegas v. American Energy Services (AES) - Answer *Illusory Promises*
-Employer, AES, formed in 1996
-Employees voiced concerns in a meeting to John Carnett, a vice president of AES, complained
about working long hours with antiquated equipment.
-In an effort to provide an incentive for them to stay with the company, Carnett promised the
employees, who were at-will and therefore free to leave the company at any time, that "in the
event of sale or merger of AES, the original [eight] employees remaining with AES at that time
would get 5% of the value of any sale or merger of AES."
-In 2001, AES was bought by another company (acquisition)
-7 of the 8 original employees were still with AES at the time of the acquisition.
-Vanegas was one of the remaining employees
-Those remaining employees demanded their proceeds, and when the company refused to pay,
the employees sued, claiming AES breached the oral agreement.
-AES argued that because these were at-will employees, any promise was illusory and therefore
not enforceable—the company could have avoided the promise by firing the employees at any
time.
-The trial court granted summary judgment for AES, and the court of appeals affirmed; the
employees appealed.
-The employees sued for breach of contract. The trial and appeals court agreed with AES; the
employees appealed.
-Even if the promise made by AES was illusory, the remaining employees performed on the
unilateral contract, thereby making it enforceable.
-DECISION: reversed (court of appeals' judgement) and remanded (to trial court)
*One issue before the court was... whether AES was bound by a promise to pay at-will
employees 5% of the value of the sale of the company if they continued their employment after
the sale*
Denney v. Reppert - Answer *Preexisting Obligation*
-3 armed men robbed a bank
-The bank advertised a $500 reward for the arrest of each bank robber.
Questions Solved Correctly 2026
Updated.
Vanegas v. American Energy Services (AES) - Answer *Illusory Promises*
-Employer, AES, formed in 1996
-Employees voiced concerns in a meeting to John Carnett, a vice president of AES, complained
about working long hours with antiquated equipment.
-In an effort to provide an incentive for them to stay with the company, Carnett promised the
employees, who were at-will and therefore free to leave the company at any time, that "in the
event of sale or merger of AES, the original [eight] employees remaining with AES at that time
would get 5% of the value of any sale or merger of AES."
-In 2001, AES was bought by another company (acquisition)
-7 of the 8 original employees were still with AES at the time of the acquisition.
-Vanegas was one of the remaining employees
-Those remaining employees demanded their proceeds, and when the company refused to pay,
the employees sued, claiming AES breached the oral agreement.
-AES argued that because these were at-will employees, any promise was illusory and therefore
not enforceable—the company could have avoided the promise by firing the employees at any
time.
-The trial court granted summary judgment for AES, and the court of appeals affirmed; the
employees appealed.
-The employees sued for breach of contract. The trial and appeals court agreed with AES; the
employees appealed.
-Even if the promise made by AES was illusory, the remaining employees performed on the
unilateral contract, thereby making it enforceable.
-DECISION: reversed (court of appeals' judgement) and remanded (to trial court)
*One issue before the court was... whether AES was bound by a promise to pay at-will
employees 5% of the value of the sale of the company if they continued their employment after
the sale*
Denney v. Reppert - Answer *Preexisting Obligation*
-3 armed men robbed a bank
-The bank advertised a $500 reward for the arrest of each bank robber.
