DID JIM AND LAURA BUY A CAR. 2Definition of legal contract elements as shown in the case studyFor both parties to make such an informal contract as this, there are three essential rules that must be adhered. One issue is that there must be very reliable evidence to support that both parties verbally agreed, indeed there was an agreement reached to purchase blue four-door sedan car. The second issue is that even if the moment was not very critical, Jim and Laura orally agreed with Stan that the vehicle is held for a day, and they paid $100.00 as the commitment fee which is refundable. The third thing is that it was clear that Stan who was the salesman had accepted the offer made by receiving the cash and assured them that the deposit was refundable.State statutory, private as well as common laws are the rules and regulations that mainly govern any contract made (White, et..al.., 2017). Common laws are made by judges while private include terms that parties agree upon when promising each other. In some cases, private rules seem to be above most of the other provisions other than those brought in by the state.