LEG - Assignment 1 - RUNNING HEAD: Assignment 1 Did Jim and...

RUNNING HEAD: Assignment 1 – Did Jim and Laura Buy a Car?
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Assignment 1 – Did Jim and Laura Buy a Car?
Kalah Edrington
LEG100 - Business Law
Professor Lori Baggot
November 15, 2016

Assignment 1 – Did Jim and Laura Buy a Car? 2
Assignment 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 a
scenario 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 and
Laura 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? 3
can only be applied to the price of the vehicle. The couple is left distraught, are they truly bound
to 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.