4George Musk owns Geo's Spectacles, Inc.Nation EyeOne Company wants to expand into new markets, and Nation EyeOne makes an offer to acquire Geo's Spectacles for $2,000,000 through a proposed contract created and signed by Nation EyeOne.The contract provides that Nation EyeOne will pay $40,000 in earnest money, which will be applied to the purchase price at closing.The contract also provides that if the contract is not consummated by reason of Nation EyeOne's refusal or inability to perform, then the earnest money shall be paid to Geo's Spectacles as liquidated damages for Nation EyeOne's breach.Geo Musk makes several material handwritten changes to the contract, signs it, and returns it to Nation EyeOne.Nation EyeOne puts the agreement in a file without agreeing in writing to Geo's changes and sends a $20,000 check for the earnest money for deposit into an escrow account, but the check is returned for insufficient funds.Meanwhile, Nation EyeOne discovers another eyeglass company in the market while it is conducting due diligence, and Nation EyeOne decides not to consummate the transaction with Geo's Spectacles.Geo's Spectacles sues for breach of contract asking to recover $40,000.

4-1Is there an enforceable contract?Explain why or why not using the essential elements of a contractual arrangement as the framework for your analysis.Each element must be specifically and separately addressed.

4-2Assuming that the contract is enforceable, is $40,000 in liquidated damages an enforceable remedy?Why or why not?

4-3Are other remedies available if the liquidated damages clause is enforceable?Why or why not?