Franco is an exchange student from Italy studying at a university in Australia. He bought a bicycle when he arrived so he could easily travel around the campus and to his accommodation. He met with Robert and agreed to sell his bicycle to him for $500 and to deliver it at the end of semester,but has since decided to extend his exchange for another semester: he now wants to keep his bicycle. Whether he can legally renege on the deal with Robert or not depends on whether a legally enforceable contract has been made. 

1. (a) What elements need to be present to decide if there is a binding contract between Franco and Robert?

(b) Identify exactly what conduct or actions would constitute each of the required elements in the agreement between Franco and Robert.

2. Is there a problem with any of the required formation elements in the agreement between Franco and Robert? If so, identify which element(s) may be a problem. 

3. Would the agreement between Franco and Robert be classified as 'bilateral' or 'unilateral'? Explain you answer.