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RUNNING HEAD: Assignment 1 – Did Jim and Laura Buy a Car?
Assignment 1 – Did Jim and Laura Buy a Car?2Assignment 1 – Did Jim and Laura Buy a Car?Have you or someone you know ever made a simple agreement that resulted in a legally binding contract? If the answer is yes, well, you are not alone. Many people enter into contracts every day and sometimes do not even realize it. For the purpose of this paper, we will examine ascenario in which a couple, Jim and Laura Buyer, decide to visit a car dealership because they are interested in buying a new a car. So, once it is time for the couple’s departure, why are they troubled to learn that they did, in fact, buy a car? If only Jim and Laura had known what elements formed a contract they probably would not be on their way to visit a lawyer now. Therefore, in full detail, the elements of what creates a legally binding contract will be explained.Once we have observed the facts from the scenario, we will apply laws and statutes that govern contract law to determine if a formation of a contract, to purchase an automobile, actually took place at the dealership. To fully understand the issue at hand, a summary of what did happened at the dealership will be clarified. Jim and Laura Buyer are currently having issues with their current car, so they decide to visit a local dealership where they meet Stan Salesman. Stan proceeds to show Jim andLaura several cars, but they especially like the blue four-door sedan. Thus, Jim and Laura, agree to give Stan a one-hundred-dollar deposit so that he will hold the car for one day. Although the couple leaves without a receipt, Stan Salesman assures them that the deposit is guaranteed refundable. It is also important to know that no documents were signed by either Jim or Laura. However, the following day, Stan contacts the couple to ask when they would like to take delivery of their new vehicle, but Jim and Laura had decided on the way home that they would rather not spend that money every month. The couple then requests their refund of the deposit only to find out that the deposit was a part of a legal contract to buy the car and that the money
Assignment 1 – Did Jim and Laura Buy a Car?3can only be applied to the price of the vehicle. The couple is left distraught, are they truly boundto this contract Stan is referring to; to know if there is a legally binding contract in this situation we need first to look at what elements make up a contract.