Using IRAC, organize this issue into the various legal issues that arise, based on the concepts you just learned.

Mrs$.$ Smith has owned the family bakery, A Pinch of Spice, for the last forty years. It has been her livelihood as well as her family jewel since its successful opening in $1982.$ At a small business convention, Mrs$.$ Smith met Olivia, an ambitious young $25-$year old baker who manages a small cupcakery called Sweet Innovations. The two women connected instantly. Eager to learn Mrs$.$ Smith$$s successful business secrets$,$ Olivia offered her pastry skills as a part$-$time pastry chef for one and a half years at A Pinch of Spice in exchange for Mrs$.$ Smith$$s insight and wisdom in the bakery business and $$1,000$ a month stipend. Mrs$.$ Smith accepted; Olivia started working for A Pinch of Spice on a part$-$time basis, while maintaining Sweet Innovations. Both businesses are legal enterprises in the Aroostook County and hold proper business licenses in their respective cities. Because they were so excited about their venture, they did not put this first contract in writing.

After three months of working together, sales triple at A Pinch of Spice due to the innovative new desserts that Olivia and Mrs$.$ Smith introduce. Due to the financial success, Mrs$.$ Smith offers Olivia A Pinch of Spice corporate stock and a $$40,000$ salary if Olivia will work full$-$time at A Pinch of Spice. Olivia declines, saying that she wants to spend more time at Sweet Innovations. However, not wanting to hurt Mrs$.$ Smith$$s feelings, Olivia says that she will accept the stock in A Pinch of Spice and a $$1,000/$month stipend if she can continue to run Sweet Innovations and work part$-$time at A Pinch of Spice. Mrs$.$ Smith agrees. Their second agreement explains that Olivia will get a percentage share profits equal to her percentage stock ownership and that they will maintain their work schedules. There is also a provision that states $$neither party shall open a bakery, cupcakery, or similar business in the Aroostook County area.$$ Olivia agrees; the contract is then drafted and signed. On hearing the news of the stock sale, Mrs$.$ Smith$$s children try to persuade her to keep full ownership. Unbeknownst to Olivia, Mrs$.$ Smith$$s children pressure her into adding a new section to the contract. The new section states $$in order for Olivia to fully share in the profits of A Pinch of Spice, she must close down Sweet Innovations.$$

Analyze the first contract between Olivia and Mrs$.$ Smith. Is there a valid contract between Olivia and Mrs$.$ Smith? Assuming a valid contract, what are the possible defenses that might arise?

Analyzing only the second contract between Olivia and Mrs$.$ Smith, are there any contract performance issues that arise? If so$,$ what are those issues?