The Valley Area Anti-Smoking Foundation (VAAF) offered to pay any Valley Area resident, who was a confirmed smoker, $500 if he or she would refrain from smoking for one year.Chad, a Valley resident, decided to accept the offer.He quit smoking immediately and did not smoke for the whole year.When Chad contacted VAAF to inform of his success and collect his $500, VAAF informed him that it was able to pay only $250 because so many Valley Area residents had taken advantage of its offer.Answer the following questions and fully explain your answers.

1. Was VAAF contractually obligated to pay Chad for refraining from smoking? Why or why not?
2. Which case covered in the class is relevant to these facts?Name the case and why it is relevant?
3. Is Chad entitled to received $500 or $250?Why or why not?