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1Elements of a Legal ContractAddison ClarkBUS3021: Business LawCapella UniversitySeptember 30, 2020
2Elements of a Legal ContractQuestion 1A contract in legal term is an agreement between two or more parties that can be enforced by law. The script shows a discussion between Laura, Jim and Stan. Following are elements of a contract.Elements of a Contract1.OfferAn offer is an ability and desire to enter into a contract displayed by all or more parties. An offer is supported by negotiating between those who want to agreement, in most cases (Altschuler, Sgroi, & Ryniker, 2016). In this case, the bargain is made to persuade one another and draw a conclusion. For the above example, when they approve the sales terms of the salesman, an offer is defined.2.AcceptanceAs soon as the purchaser agrees to the terms of the contract, no modification to any portion of the contract is necessary as such an effort becomes an infringement; thus, any modification would become irrelevant. In this scenario, Stan confirms that ifa hundred dollars is given to him as a deposit for the vehicle, it will be refunded in theevent that Jim and Laura are no longer interested in purchasing the vehicle. They all accept the offer, and the cash is deposited by Jim and Laura. Stan fails to honour the verbal arrangement upon returning the next day; thus, granting the two to file a lawsuit against him for breaching the contract (Nysten et al., 2010, p.465). In addition, since the two changed their minds to buy the car, it can be said that there
3was no binding contract between the two; therefore, they did not accept the agreement.3.Legal CapacityLegal capacity implies that at the time of entering into a contract, the contracting persons must be of good condition in terms of sanity. This is because a