Mike McCarthy started a business in 2018 creating computer generated images for use in computer games. As Mike was unsure initially on how successful his business was going to be, his friend Damian asked Mike to create some short films with computer generated images which Damian could use to train his own employees in his business. Damian offered to pay Mike 5,000 for he the work. Mikes other friend Lee also asked Mike to update his website and agreed a fee of 2,000 for the work. Over the next few months, Mikes business became hugely successful and made high profits. Damian and Lee have refused to pay Mike for the work he has done for them on the basis that they only offered to pay him to give his business a good start and as friends there was never any intention for the agreement to be legally binding. Moreover, Mikes business is now very successful so he does not need the money promised by Damian and Lee. In 2019, Mike ran into difficulties developing some new software and was worried about the effect on his business. He placed an advert in Resolve Ltds (a specialist software company) employee magazine which stated 25,000 reward to any employee of Resolve Ltd who can fix my software problems. Masood, a computer expert whose brother is an employee of Resolve Ltd, started work to solve the problem as soon as he saw the advert. Before Masood had finished the work, Mike put another advert in the magazine which said offer cancelled -software problem solved

Analyse the scenario in the context of contract law and :

a) Advise Mike if he can take any action against Damian and Lee.

b) Advise Masood if he can take any action against Mike.