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Please post your brief answers to these two questions. I will record an audio lecture to give you some pointers about the upcoming exam I. This questions are only about formation of contract issues, essentially Chapters 10-12.

QUESTION I.

Mr. Liu, who works as in-house counsel at Louis Vuitton in New York, Cityowns a Bentley vehicle worth $200,000. His childhood friend Josh, who likes to shop and watch Broadway shows, often comes to visit Liu in New York. Every single time they get together and they cruise around Manhattan in Liu's Bentley, Josh says, " Liu, I love your car. Please, please sell it to me right now." However, Liu always answers, "No. No way!" Still, Josh keeps asking all the time and that really irritates Liu because he is sure that Josh doesn't even have the financial means to pay for the car.

Liu eventually decided to put an end to the annoying routine. He thought it would be a good idea to get a real bill of sale and all other necessary documents as if he was really selling his car. He wanted to make it look real. To make it even "spicier," he decided to include a price somewhat above the market value of the car. Liu thought to himself, "Next time that hyena asks me to sell him my car, I will give him all these documents and ask him to sign them." Liu really wanted to embarrass Josh.

Next time they drove in Liu's Car, Josh again asked Liu to sell him his car. Liu angrily pulled all the documents from under his seat and said, "Here, put up now or shut up forever. Sign these papers and the car is yours." Surprisingly enough, Josh did not look embarrassed. He carefully examined all documents and decided to buy the car. It is now clear that Josh is very serious and has the financial means to buy the car. Apparently, Josh inherited a lot of money recently. Liu told him that this was a joke but Josh would not accept that. Liu goes to an attorney and tells him that he doesn't want to part with his car. Is Liu bound? Analyze all relevant issues.

QUESTION II

Jeff says to Brenda, "I offer to sell you my PC for $900." Brenda replies, "If you do not hear otherwise from me by Thursday, I have accepted your offer." Jeff agrees and does not hear from Brenda by Thursday. Does a contract exist between Jeff and Brenda? Explain.