CONTRACTS

Joe offered to sell Harry his car for a specific price, and Harry indicated that he needed some time to think about it. Two days later, Joe sold the car to a third party. That afternoon, Harry phoned Joe and told him that he had decided to accept the offer and that he'd buy the car. Joe told Harry that it was too late; he had sold the car to someone else. Harry said that it had been offered to him first, and he insisted that Joe go through with the contract.

1. Was there a valid contract between Joe and Harry? Your answer must specifically reference each of the elements of a valid contract and describe how each relate to the facts presented above.

2. If you conclude that there was a valid contract, explain the legal liability of each of the parties.