Kawhi wanted to buy t-shirts that he could customize and sell for a profit. Steph manufactured plain white t-shirts that seemed to be of high quality. Steph ordinarily sold the t-shirts for $5 each, but he told Kawhi that he would give him a deal if he ordered a large volume. Kawhi said he thought that would work for him, and he looked forward to doing business with Steph.

Three days later Kawhi emailed Steph an order for 1,000 t-shirts stating that he would pay $3 a t-shirt. Kawhi had just agreed to sell customized shirts to Pascal and Kyle Sporting Goods ("PKSG") for $5 each, and to deliver the order in 2 weeks' time. A few days later Steph replied to the email, stating that he would need three weeks to fill the order and that he would have to charge $4 per t-shirt. Kawhi doesn't know what he is going to do. He could not possibly meet his obligations to PKSG.

a.Is there a valid contract between Kawhi and Steph, or Kawhi and PKSG? Explain your analysis, considering the six elements of a valid contract.

b.Are both contracts enforceable? Explain your analysis.

c.What is going to happen to Kawhi now? What should he do?

d.What should Kawhi have done to avoid the situation that he is in?