1.Lebron entered into a franchise agreement for a sum of P300,000 with Steph, a food franchisor. In their initial verbal contract, Steph offered that, upon payment of P150,000, he will look for a viable location of the franchise food business. Steph also said that once he identified the location, theP150,000 balance must also be paid.

Lebron accepted the offer and paid Steph the agreed down payment. However, several months have passed and Steph still failed to fulfill his obligation of looking a location of the business. When Lebron asked for an update, Steph instead offered a different concept and demanded full payment for him to continue with the processing of the business.

Left without a better option, Lebron paid the remaining balance hoping that the process will be expedited. Sadly, upon further perusal of the contract which Steph asked Lebron to sign, Lebron noticed that it did not reflect what they have verbally agreed on.

a.What would you call or name the contract between Lebron and Steph, which they eventually made (assuming that they never named it)? Why? Cite the applicable article. (5 points)

b.Can Lebron recover the payments he made? If Steph will not pay him, what case or action will Lebron file based on the said contract and what would be the legal basis of Lebron? (5 points)