Assignment 1 Business Law.docx

The second aspect of a legal contract is the

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The second aspect of a legal contract is the consideration. This is the amount that the second party is willing to part with in order to be given the object that the contract has to be based on. The consideration given by Jim and Laura is a value of $100. One which they offered the salesman as a deposit so as to hold the car for an extra one day. Besides this instant consideration, at first, they were willing to give the Stan an installment of $400 so as to clear of the whole amount of buying the car after some time. Another aspect of a legal binding contract is the acceptance. This is an element reached after the concerned parties have negotiated and reached a mutual understanding that they would be willing to enter into the agreement with the terms offered by each team. The acceptance in the scenario presented is evident through Jim and Laura agreeing to part with the $100 deposit to secure or book the car, while on the other hand, Stan reassures them that the deal is sealed and the $100 they entrust him is refundable. Besides the above aspects mentioned, a contract is also characterized by the intention to legally bind the parties involved as well takes into consideration the capacity of the parties entering the agreement. Some of the legal requirements include the formalizing of the contract through signing or any other form that can be proved to be formal, the contract to be binding as soon as it is signed as well as the fact that neither party is obliged to perform the exact agreement unless it is formalized (Fried, 2015). One of the most evident aspects that come out in the scenario is the fact that the contract was entered through a word of mouth. Besides, there were no terms set or signed and there is no any legal aspect that could force either party to adhere to their promise as soon as the contract has been formalized since the aspect of formalization was
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DID LAURA BUY A CAR 4 completely not adhered to. Although it is implied that the parties are in a capacity to enter an agreement as they are of a working class, it would be right to point out that they have not followed the legal procedure of entering into a contract.
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