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1Elements of a Legal ContractAddison ClarkBUS3021: Business LawCapella UniversitySeptember 30, 2020
2Elements of a Legal ContractQuestion 1A 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 2There is a verbal agreement between both parties to sale and buy a car at an agreed price.Question 3Laura 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