The Fergusons, Sally and John, and the Warrens, Janice and Ned, lived in the same community for many years.Both couples lived on small farms, and although the entrances were on different roads, the farms backed up to each other and shared a common back lot line.Ned and John were very competitive. They both were store owners and that fierce competitive spirit governed almost every business decision they made.Ned was a rather serious person while John loved playing practical jokes on folks in the community, especially Ned.Both couples had over the years contemplated what life would be like if either they could buy the other's farm so they could devote more time to farming and on other occasions would wonder what life would be like if they sold the farm and moved to a larger city.

One evening the couples found themselves together in a local restaurant and club and ate supper together.During the meal Ned asked John if he and Sally would sell their farm to Ned and Janice.John decided to have a little fun at Ned's expense and said he would sell for a price but Ned would not pay John's asking price. As they bantered back and forth they got louder and louder and several of the people at surrounding tables stopped what they were doing and turned their attention to the John and Ned show. John did not particularly want to sell their farm but wanted to see how far he could push Ned to meet his price, just for the fun of it.Although he appeared to be very serious, one of theeavesdroppers asked Sally if John really was serious.She said she didn't think so, that John had told her he was just going to see whether Ned would ultimately agree to John's asking price.Ultimately they agreed on a price and Ned prepared a sales agreement describing the land and the purchase price.It included all necessary provisions to be binding. Both couples signed the agreement.While signing John winked at his wife and the nosy eavesdropper that had ask if John was serious.

This question has two parts:

A.The next day, John said he wasn't serious and it was just a joke and asked Ned to tear up the agreement.Ned refused and demanded John comply with the contract and when John refused Ned filed suit to enforce the contract.Set out in full all issues that might be raised by John to show there was no contract and those that might be raised by Ned to show there was a contract.Explain your answer.

B.The next day, Ned told John that the more he thought about it, and after discussing it with Janice, he did not want to buy the farm and suggested they tear up the agreement.At that point John changed his mind and said, "No, Ned, a deal is a deal.I'm going to hold you to it.Ned refused to complete the purchase and John sued Ned to enforce the contract.Set out in full all issues that might be raised by Ned to show there was no contract and those that might be raised by John to show there was a contract.Explain your answer.