JIM AND LAURA BUY A CAR.docx - Running head DID JIM A LAURA BUY A CAR 1 Did Jim and Laura Buy a Car Shauna M Frierson LEG 100 Business Law I Professor

JIM AND LAURA BUY A CAR.docx - Running head DID JIM A LAURA...

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Running head: DID JIM A LAURA BUY A CAR1Did Jim and Laura Buy a Car?Shauna M. FriersonLEG 100: Business Law I Professor Chester Galloway
DID JIM A LAURA BUY A CAR2Did Jim and Laura Buy a Car?Contracts are a significant part of businesses around the world. In the case of Jim, Laura and Stan Salesman, the parties did have an agreement, but was that agreement for the purchase ofvehicle? The answer is no. The parties did not enter a legally binding contract for car’s purchase and Jim and Laura are entitled to the return of their $100 deposit. In order to establish if parties have entered into a contract or if a contract is enforceable, one must consider the elements of a contract. The seven key features of a contract are offer, acceptance, consideration, legality, capacity, consent and writing. The offer element of a contract refers to a deal being proposed by one party to another. Once the party agrees to the deal they must respond, this is acceptance. Because a contract cannot benefit only one party, there must be some form of bargaining to ensure both parties will benefit from the contract, this is the element of consideration. All enforceable, valid contracts must be legal. For example, parties cannot entera contract for the purchase of stolen goods. By law, this is an unenforceable agreement. Contractscannot be enforceable if one or more of the parties involved are lacking capacity. Capacity is the “legal ability to enter into a contract”. Parties who may lack capacity include minors, those underthe influence or those who are mentally impaired. The party accepting the deal must do so with consent. If the consent is jeopardized by factors such as fraud, intimidation or misleading information, the contract could be unenforceable. While having a contract in writing may be the best way to enforce a contract, not all contracts must be in writing to be considered enforceable. If all of the above seven key components of a contract are met, a contract has been formed and will more than likely be enforceable in the court of law.We now revisit the scenario involving Jim, Laura and Stan Salesman. Jim and Laura arrived at the car dealership with intentions to purchase a new vehicle. There, they meet Stan

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