Did Jim And Laura Buy A Car Case Study
Did Jim and Laura Buy a Car?
Tracie Lewis
Professor Ericka Harden
Business Law I
February 11, 2018
A contract is an agreement that is either spoken or written and is enforceable by the law. For the contract to be valid and binding, several elements must exist. Execution, mutual promises, parties, and terms of performance are the factors that must exist. There also must be an offer, consideration, acceptance, and mutuality for a contract to remain legally binding and helpful on instances of any breach (Burton 2009). The most important part of the contract is closing the deal. The point of the actual sale of the blue four-door sedan, which Jim and Laura both agreed they liked, would be the close of the deal in this case. After reviewing …show more content…
When that does not happen; he then feels that the initial $100 deposit was a commitment into a contract. However, since there was not a committing document made by both parties that would not be the case in this situation. This was a mutual agreement that at any point and time, either party could revoke since nothing was bounding them together. In fact, as Jim and Laura discussed the vehicle they liked, $100 was an initial deposit, but Stan Salesman in this case never told them it would be apart of the purchasing contract for the vehicle. On the other hand, an agreement needs to be something that can lawfully bind two or more parties by the requirements of the law (Beatty, 2016). In the absence of a binding document, such as receipts, Jim and Laura in this situation have the right from their initial decision of making a contract choice, one that can obligate Stan Salesman to give them a refund of their $100 refundable …show more content…
Putting down the $100 deposit in this case, constituted as an acceptance of an unclear offer. By paying the $100 deposit, it gave Stan Salesman the impression that his offer was being accepted and that both parties were agreeing to the offer. The mirror image rule is the issue at hand. By law, this rule states that an offer must be accepted exactly without modifications. In the beginning, Jim and Laura had a different motive. They were lead to believe that they were accepting into something else. Consideration also plays a big part in to a contract’s elements. Consideration summarizes that both parties should benefit from the contract at hand. If one party were to have more benefits than the other party this would constitute a lack of consideration. This would then cause the contract to be unenforceable by law. I feel that in this case that this contract lacks consideration as far as value goes. I feel that in this case, the contract lacks consideration as far as the value goes. I do not feel as though Jim and Laura are getting something of measurable value because they decided against wanting to purchase the vehicle. Stan Salesman may think they are getting something of value, but he did not take into consideration their reason for not wanting the
Tracie Lewis
Professor Ericka Harden
Business Law I
February 11, 2018
A contract is an agreement that is either spoken or written and is enforceable by the law. For the contract to be valid and binding, several elements must exist. Execution, mutual promises, parties, and terms of performance are the factors that must exist. There also must be an offer, consideration, acceptance, and mutuality for a contract to remain legally binding and helpful on instances of any breach (Burton 2009). The most important part of the contract is closing the deal. The point of the actual sale of the blue four-door sedan, which Jim and Laura both agreed they liked, would be the close of the deal in this case. After reviewing …show more content…
When that does not happen; he then feels that the initial $100 deposit was a commitment into a contract. However, since there was not a committing document made by both parties that would not be the case in this situation. This was a mutual agreement that at any point and time, either party could revoke since nothing was bounding them together. In fact, as Jim and Laura discussed the vehicle they liked, $100 was an initial deposit, but Stan Salesman in this case never told them it would be apart of the purchasing contract for the vehicle. On the other hand, an agreement needs to be something that can lawfully bind two or more parties by the requirements of the law (Beatty, 2016). In the absence of a binding document, such as receipts, Jim and Laura in this situation have the right from their initial decision of making a contract choice, one that can obligate Stan Salesman to give them a refund of their $100 refundable …show more content…
Putting down the $100 deposit in this case, constituted as an acceptance of an unclear offer. By paying the $100 deposit, it gave Stan Salesman the impression that his offer was being accepted and that both parties were agreeing to the offer. The mirror image rule is the issue at hand. By law, this rule states that an offer must be accepted exactly without modifications. In the beginning, Jim and Laura had a different motive. They were lead to believe that they were accepting into something else. Consideration also plays a big part in to a contract’s elements. Consideration summarizes that both parties should benefit from the contract at hand. If one party were to have more benefits than the other party this would constitute a lack of consideration. This would then cause the contract to be unenforceable by law. I feel that in this case that this contract lacks consideration as far as value goes. I feel that in this case, the contract lacks consideration as far as the value goes. I do not feel as though Jim and Laura are getting something of measurable value because they decided against wanting to purchase the vehicle. Stan Salesman may think they are getting something of value, but he did not take into consideration their reason for not wanting the