Supreme Court of New Jersey
315 A.2d 25 (N.J. 1974)
Leonard (plaintiff) was employed by Lipsit (defendant). The written employment contract stated that a more permanent relationship between the two involving an equity interest in the business for Leonard may be developed and put into effect later. Leonard claimed that the contract came with an oral promise—which induced him to leave his previous job and then continue working for Lipsit—that he would eventually be given that equity interest in consideration of his continued employment. Eventually, Lipsit made a proposal to Leonard that did not make economic sense for him. Leonard rejected the proposal and soon after was fired. Leonard brought suit for the tort of fraud, claiming that Lipsit never intended to make good his promise of giving Leonard an equity interest, which amounted to a misrepresentation, and fraud in his inducement of Leonard to continue working for him. (Leonard also brought suit for breach of contract, but this cause of action was properly dismissed because there was no enforceable contract involving the equity interest, as the parol evidence rule barred the alleged oral promises Lipsit made to Leonard). The trial court awarded summary judgment to Lipsit and the appellate court affirmed. Leonard appealed.
Rule of Law
Holding and Reasoning (Per Curiam)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.
Here's why 200,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 14,000 briefs, keyed to 188 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.