Chapter 13 Hypothetical Case 1 . While having a beer and a hamburger at Rapid City, South Dakota's favorite watering hole, All the Presidents' Heads, Jake Johnson and Alan Harrison's conversation eventually leads to the topic of Johnson's cabin at Canyon Lake nearby. Johnson has owned the cabin for years, having inherited it from his father, and Harrison has always admired his friend's hideaway from the madness of the "civilized" world. Emboldened by the beer, Harrison scrawls out the following with a pen and napkin provided by the waiter: "Contract for purchase and sale of 106 Canyon Lake Drive property, purchase price-$100,000-Signed, Jake Johnson and Alan Harrison." Harrison signs the napkin and presents it to his friend with a smile. Johnson says, "Cheers," finishes his drink, and signs the napkin as well. Later that day, Harrison calls Johnson and inquires when the two should close on the property. Johnson is taken aback and says to his soon-to-be ex-friend, "Alan, I was only kidding; surely you knew it was just a joke. For crying out loud, a napkin isn't a contract, and you know how much I cherish my cabin!" Is Jake Johnson obligated to sell his property at 106 Canyon Lake Drive to Alan Harrison? What if the fair market value of the property is $400,000? 13- 3 2020 McGraw Hill Education