Business Law Assignment 1 (1).docx - 1 Assignment 1 Did Jim and Laura Buy A Car Roberta M Brown Professor Samuel Christian Business Law I-LEG 100 2 Did

Business Law Assignment 1 (1).docx - 1 Assignment 1 Did Jim...

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1Assignment 1: Did Jim and Laura Buy A Car?Roberta M. BrownProfessor Samuel ChristianBusiness Law I-LEG 100February 21, 2019
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2Did Jim and Laura Buy A Car?A contract is a legally enforceable agreement. There are elements to a contract that makes it binding and valid. Jim and Laura were in the market for a new vehicle. Stan Salesman allowed Jim and Laura to test drive several vehicles. Jim and Laura liked the blue 4-door sedan but were undecided about a purchase and wanted one day to think about it before making adecision. They offered and gave Stan Salesman a $100.00 deposit to hold the car for one day. Stan Salesman did not give them a receipt but accepted the $100.00 deposit and verbally guaranteed that the $100.00 deposit was refundable. They did not sign any documents. This wasa bilateral contract that both parties agreed to that Stan Salesman would hold the 4-door sedan for one day and Jim and Laura would leave a $100.00 refundable deposit if they chose not the purchase the 4-door sedan.There was no mention of any specifics about the terms of the contract to purchase the vehicle.They also did not have anything in writing stating what the terms of the agreement would be. Stan Salesman did not keep his end of the verbal agreement to refund the $100.00 deposit if Jim and Laura decided not to purchase the 4-door sedan. If the deposit was not refundable Stan Salesman should have specified that in the verbal agreement. When Jim and Laura decided they would not purchase the 4-door sedan and requested their $100.00 deposit back, Stan Salesman insisted that the $100.00 was a deposit on the car and was meant to be part of the contract to buy the vehicle. This was never mentioned in the original verbal agreement. Refundable means if you change your mind, you can get your money back.Elements of a ContractOffer: The first element of a contract is an offer. All contracts begin when a person or a company proposes a deal. In the case of Jim and Laura there was an offer to give a $100.00 deposit to hold the vehicle for one day to allow them time to decide if they wanted to purchase the vehicle. Stan Salesman agreed and offered to hold the vehicle for one day along with guaranteeing that the $100.00 deposit was refundable if they decided not to purchase the vehicle.Acceptance: Once a party receives an offer, he must respond to it in a certain way. This
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3means that the terms of the offer have been clearly understood and agreed to through consent by both parties and at no time will the terms be changed. Jim and Laura entered into an agreement with Stan Salesman that would have resulted in the purchase of the 4-door sedan but they have the legal right, under the law, to cancel the deal without any cost to them. Consideration: There has to be bargaining that leads to an exchange between the parties.
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