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1 Elements of a Legal Contract Addison Clark BUS3021: Business Law Capella University September 30, 2020
2 Elements of a Legal Contract Question 1 A 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. For a contract to be legally binding it must contain four essential elements: 1. an offer (Jim and Laura offered $100 to Stan as an initial payment for a car) 2. an acceptance (Stan accepted $100 as a refundable deposit) 3. an intention to create a legal relationship (Both parties give a consent to sale and purchase) 4. a consideration (Jim and Laura gave Stan a $100 as an initial deposit.) Question 2 There is a verbal agreement between both parties to sale and buy a car at an agreed price. Question 3 Laura and Jim agreed to pay Stan only $ 100 as a refundable deposit for the chosen car. They did not receive any receipt or proof of money given to Stan. Stan verbally said the

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