Smith sold a home to Jones on a land contract and recorded the contract. Jones made a $25 down payment and after the sale, made a few of the required monthly payments. One night Jones moved out and abandoned the house. Which of the following is true?
1) Smith can take legal action against Jones for breach of contract
2) Jones is not responsible for any further payments
3) Smith must return the $25 down payment to Jones
4) Jones can sell the house to someone else without consequences