A university is seeking to conduct research on livestock so as to develop a new vaccine which will prevent a particular disease in sheep. A farmer offers to lease 4 acres of land for a period of 5 years to the university for the holding of sheep, who will be livestock on which the new drugs can be tested. The farmer agrees to sign a contract prepared by the university lawyers. The contract gives exclusive use of the 4 designated acres of land to the university, who in turn promise to use the land only for university purposes and not for profit making purposes. The university will pay $1 per year to the farmer for the right to use the land over the 5 years. One year into the contract, prices for wool and meat have risen dramatically. The farmer would like to end the contract and take the land back. The farmer believes there was not really a contract between himself and the university since the rent was only $1 per year, which indicates a simple friendly arrangement rather than a binding contract. Can the farmer claim that there is no contract? Explain your answer. In answering this question, students are expected to discuss the elements for the creation of a contract.