CONTRACTS Joe and Dave are cousins. Dave has just been accepted into medical school but is worried about how he will pay for his tuition, books and rent. After going out for a cup of coffee and hearing Dave's concerns, Joe says that he will give Dave $500 per month in order to help with his expenses. Halfway through the school year, Joe decides that he would like to start saving for a new car and he tells Dave that he will no longer provide him with $500 per month. Dave feels like Joe has breached a contract as is considering suing for breach.

1. Specifically referencing the required elements for a valid contract to exist, please explain whether a valid contract exists here?

2. If you conclude that a valid contract does not exist, what could Dave have done to ensure that the promise became legally binding?