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Running Head: DID JIM AND LAURA BUY A CAR1Did Jim and Laura Buy A CarDenise DeniseProfessor Legal 100: Business Law INovember 16, 2017
DID JIM AND LAURA BUY A CAR2A contract is an obligation that is enforceable by the law. The contract can be either written or verbal. There are seven elements of a contract that makes it valid and binding. The parties must have a mutual promise, terms of performance and execution. There also must be an offer, consideration, acceptance and mutuality for a contract to remain legal. Closing the deal is the most important part of the contract. There should be a clean manifestation of willingness to enter an agreement made by another party with the full understanding that their assent to the bargain is an invitation and is concluded. As for Jim and Laura, there was an offer in this case. When Stan Salesman agreed to accept $100 from Jim and Laura to test-drive the sedan. Jim and Laura was the offeror and Stan was the offeree. However, after some consideration regarding their willingness to spend $400.00 monthly, they decided not to purchase the car. For a contract to exist there should have been a mutual agreement for a smooth exchange of property. Jim and Laura has to agree to the terms