Luigi was having dinner with Bewance, a famous singer$.$ Luigi orally offered $$10$ million for a five$-$year contract to her record three albums for Luigi's record company. This was the fair market value for a star of Bewance's fame. Luigi wrote up a contract on the spot on the back of a receipt from the hotel restaurant. Bewance thought it was a joke and had no subjective intentions of entering into the agreement, but she signed the "contract" for fun. Which of the following is true of this situation?

Multiple Choice

There is no contract because Bewance's subjective intentions prevent formation of the contract.

Since the contract was written without lawyers present, it was likely not really serious, so no contract was actually formed.

Because the terms were fair, the parties are bound by the contract regardless of their intent or capacity.

Bewance's actions made her appear serious; therefore, she is bound by the contract despite what she was inwardly thinking.