Peter and Nancy live side by side in town homes joined together by a shared wall. Both residences are in need of new exterior paint. On Monday, Peter calls a painter, Tom, having selected his name from the classified section of the phone directory. Peter describes his address, the physical dimensions and structure of his home, and he agrees with Tom that the work will be performed that Friday. Tom estimates that with his crew of five, and given the relatively small size of the home, the work will only take one day to complete. Peter advises that although he will have to work a fourteen-hour day on Friday, he would like to have the work completed in his absence. In passing conversation with his neighbor Nancy, Peter advises her of his "home improvement" plans.

Early Friday morning, Tom and his team arrive at the address, but by mistake, they begin work on Nancy's side of building. Although Nancy is home, she does not object to the work, nor does she inform Tom and his crew of the mistake. Midway through the day, she offers them fresh-squeezed lemonade and ham sandwiches, and they heartily accept.

Upon completion of the work at 7:00 p.m. Friday evening, Tom knocks on Nancy's door and asks if "the man of the home" is present, that he would like Peter to review the work and pay the agreed-upon price for the work. Nancy chuckles, and "breaks the news" that the painting crew has made a mistake, one to her benefit. Nancy proclaims "I do not owe you one dime, because you do not have a contract with me; I will give you ten minutes to remove yourself and your materials from my property, or I will call the police."

Do Nancy and Tom have a contract? If so, why? If not, are there any other theories of recovery available to Tom? What does he need to prove to win?

Please follow the "IRAC"(Issue, Rule, Analysis, Conclusion) guideline to frame your answer and answer them as completely as you are able in no less than 1 page