John Walker while at a party in a friend's house, after consuming a lot of alcohol and was clearly intoxicated, agreed to buy his friend's painting, which was of little value, for $1000. His friend knowing that the painting was of little value, probably less than $100, quickly agreed to the sale. John woke up the next morning, and though still suffering from a terrible hangover, realised what he had done, calls his friend and tells him that he was only joking and never truly intended to purchase the painting. His friend is claiming that John made a contract and has to keep to his agreement.

Using the 4 step process, advise John of his legal rights. Would your advice be different if John kept quiet for a month and then attempted to rescind the contract?