To evaluate your new found knowledge of creating a contract, answer each of the following questions, being sure to provide an answer to the posed question and fully discuss the appropriate legal concept which supports your answer. Each numbered question group is worth 5 points for a total of 20 points. 1. What is an offer? What are the 3 conditions necessary for the creation of an offer? 2. Johnson was in a car accident with Smith. Smith's insurer, AAA, and Johnson's attorney exchanged offers and counteroffers to settle Johnson's negligence claim. AAA eventually agreed to meet all of Johnson's settlement conditions except her demand to be paid $20/day for the loss of the use of her car. As to that point, AAA proposed to pay $10lday. Johnson rejected the $10/day and filed an action against Smith. Smith contends the matter had been settled. ls Smith correct? Explain your answer. 3. Stan read an advertisement in the newspaper that said that the jackpot for picking the six winners in the dog race on the last night of the season was $825,000. Stan went that night and correctly picked the winners. However, it turned out that the newspaper had made a mistake. The jackpot was $25,000, not $825,000. Therefore, the track owners refused to pay the latter amount. If this ad is treated like offers of reward, can Stan collect the $825,000? Explain. 4. Stoddard was covered under a group life insurance policy and her exhusband was the beneciary. When she remarried, Stoddard designated her new husband, Thorne, as the beneciary and Thorne mailed the form to Providian, the insurance company. When Stoddard died, Thorne claimed the benefits, but Providian denied the claim stating it did not have the change of beneficiary form in its files. Thorne argued that when he mailed the form a presumption was raised that Providian had received the form. Is he correct? Explain