Unscrupulous Former Friend Blackmails Minneapolis Woman

Statement of Facts:

In December 2005 the Juice notices a small hole in the back of Jason's shirt. She offers to fix it, demanding no consideration in exchange for this service. Jason delivers the shirt to the Juice. The parties stipulate that the Juice failed to fix the shirt in what the reasonable person would consider "a timely manner." On January 3, 2007, Jason informs the Juice that he has procured an unflattering picture of her and has posted it on his refrigerator. The details of the photo are largely unknown but evidence suggests that a Fry Daddy and a great deal of alcohol are involved. Juice is aware that fellow law students and other associates have seen and will continue to see this picture if it is not removed immediately. Jason says the picture will remain on his refrigerator until the shirt is fixed and returned to him.

The Juice fixes the shirt on January 4, 2007, during a meeting of the International Craft Conspiracy. Approximately thirty minutes were spent in mending the shirt, including: (1) twenty minutes complaining to lady-friends about the situation; (2) sixty seconds drunk-dialing Jason to complain about the blackmail tactics; (3) two minutes digging through mending pile to find the shirt; (4) twenty seconds sewing the shirt; and (5) three minutes ironing the shirt. The next day, the Juice informs Jason that the mended shirt is in her possession and that she would like to deliver the shirt promptly, and demands the photograph and all underlying files in return.

The following Monday, Juice delivers the shirt. Jason does not deliver the photograph nor the underlying files. Believing Jason to be a man of integrity, Juice does not press the issue, until subsequent events arouse some suspicion regarding his actual intentions with this photograph. On January 18, the Juice calls Jason to inquire about the picture. At that time, Jason informed her that the picture would remain on the refrigerator for the same length of time that the Juice held the shirt--approximately 13 months. The Juice vehemently disagrees with this plan, believes his actions violate the terms of their agreement, and demands an immediate return of the picture.

On Friday, January 19, Jason calls the Juice, who admittedly answers the phone with some hostility because the call had interrupted a particularly hot game of Weboggle. Jason gets all huffy about her attitude and negotiations break down. Later that day the Juice learns that the picture is indeed still posted, albeit moved "to the side of the refrigerator, not in plain view."

Issues:

(1) Whether a valid contract was formed at the time Jason posted the picture, demanding the return of his shirt in exchange for its removal?
(2) Whether Jason's failure to remove the picture following full performance by the Juice represents a breach of express or implied contract?
(3) Whether Jason REALLY wants to play this game? Does he know who he is dealing with?