1. Shannon is 27 years old and has lived in a mental institution since she was 18 years old. Fred visits her one afternoon and tells her that, because she has had such a difficult life, he will give her $10,000. Shannon says she accepts Fred's offer. Fred doesn't follow throught. Does a contact exist? Why or Why not?

2. Jake thinks he has a sexual harassment claaim based on federal law against his employer. Jake resides in Texas, and his employer also redies in Texas. Jake's damages are $60,000. Can Jake sue in federal court? Why or Why not?