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Running Head: ELEMENTS OF A LEGAL CONTRACT1Elements of a Legal ContractAddison ClarkBUS3021: Business LawCapella UniversitySeptember 12, 2020
ELEMENTS OF A LEGAL CONTRACT2Elements of a Legal ContractDefine the elements of a legal contract using examples from the scenario where applicableA legal contract is an agreement between two parties that can be enforced by law. The script shows a discussion between Laura and Jim and Stan from the car salesman. A valid legal contract includes the following elements.1. Offer and Acceptance: For a contract to be valid, there must be a “legal offer” on the one hand and a “legal acceptance” on the other. The proposal must comply with the prescribed laws governing reception and jurisdiction. In the case study, Stan gives Laura and Jim a refundable refund of $ 100,000, which they both accept. Stan's offer and acceptance of Jim and Laura are legal and valid (Kumar, 2012).2. The intention to establish a legal relationship: both parties must indicate their intention to establish a legal relationship. Social agreements or agreements based on local nature are void.On stage, Jim, Laura and Stan indicated their intention to establish a legal relationship, as it was a voluntary trade relationship. It was a business interaction about buying a car that meets the criteria for a legal relationship.