Answer the Question: Did Jim and Lara Buy a Car? (Essay Sample)
Did Jim and Laura Buy a Car?
Worth 200 points
HINT: See Chapters 10-14 of the text to help understand some of the legal issues covered in this assignment.
Jim and Laura Buyer visit the local car dealership because they are interested in buying a new car. The car they currently have is aging and is starting to have mechanical problems. Jim and Laura would share the new car, and use it to go back and forth to work and school. Before going to the dealership, Jim and Laura decide that they can only afford $400.00 a month in car payments.
Once at the car dealership, Jim and Laura meet Stan Salesman. Stan shows them several vehicles and Jim and Laura test-drive several of the cars. Jim and Laura particularly like the blue 4-door sedan. Therefore, they agree to give Stan Salesman a $100.00 deposit to hold the car for a day. Stan Salesman does not give them the receipt but guarantees that the $100.00 is refundable. No documents were signed.
The next day, Stan Salesman calls Jim and Laura to ask them when they would like to take delivery of the car. Jim and Laura, on the way home from the dealership, decided that they were not going to buy the car because they did not want to spend that money each month. Therefore, Jim and Laura tell Stan salesman that they have decided not to buy the car and request their $100.00 deposit back.
Stan insists that the $100.00 was a deposit on the car and was meant to be part of the contract to buy the car. Stan is very persistent and insistent that Jim and Laura have contracted to buy the car; therefore, the $100.00 will be applied to the purchase price of the car. Jim and Laura are shocked and angry as not only do they not want to spend the money, but now feel as though they are being duped by Stan Salesman.
Jim and Laura have an appointment to see a lawyer in a few days, but know you are a student taking a business law class and come to you for advice. They are very frazzled, and understandably upset that they may have just purchased a car. Since you have been taking business law, you have read and understand the elements of a contract and the defenses to a contract. Therefore, although you are not a lawyer, you provide some basic advice from what you've learned in your business law class.
In three to five (3-5) pages, advise Jim and Laura based on the above facts as presented, the material provided in the text, and material covered in the lecture. In your paper, be sure to address the following:
Define the elements of a legal contract using examples from the scenario where applicable.
Decide whether or not there was a contract for the purchase of the automobile.
Identify the facts from the scenario which support your decision on whether or not a contract exists for the purchase of the automobile.
Use at least two (2) quality academic resources in this assignment. Note: Wikipedia and other Websites do not qualify as quality academic resources.
Format your assignment according to the following formatting requirements:
Typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
Include a cover page containing the title of the assignment, the student's name, the professor's name, the course title, and the date. The cover page is not included in the required page length.
Include a reference page. Citations and references must follow APA format. The reference page is not included in the required page length.
Grading for this assignment will be based on answer quality, logic / organization of the paper, and language and writing skills, using the following rubric.
Did Jim and Laura Buy a Car?
Elements of a legal contract
A contract is an agreement that creates obligations that are enforceable by the law. The fundamental elements that must be created to express the formation of a legally binding contract are offer, acceptance, consideration, mutuality of the obligation, a written instrument, and legal capacity (US Legal, 2012).
An offer is a demonstration of readiness to enter into an agreement made by another party with full understanding that their consent to the bargain is an invitation and is concluded. Moreover, an offer must consist of a declaration of present intention to enter a contract; a definite suggestion that is certain in its terms; and communication of the offer to the identified potential offeree. Absence of any of these elements would mean there is no offer to shape the basis of a contract. For this scenario, there was an offer. When Stan, the sales representative offered Jim and Laura time for a test drive, then finally chose, and agreed to purchase the blue 4-door sedan, it was a clear offer (The Law Handbook, 2015).
Acceptance of an offer is the demonstration of an agreement to its terms. Acceptance must be made in the manner specified by the offer, but where manner of acceptance is not specified by the offer, then acceptance might be made in a way that is reasonable under the circumstances. An acceptance is only valid, if the offeree knows the offer, the offeree demonstrates intent to accept, and the acceptance is conveyed as an unambiguous and unconditional agreement to the terms of the offer. Several offers specify the manner of acceptance, including oral, written, by phone, in person, by handshake, and by ceremony. However, other offers leave open the manner of acceptance, allowing the offeree to accept in a reasonable manner. In this scenario, the buyers accepted the offer. After Jim and Laura chose the blue 4-door sedan, they agreed to give Stan a $100.00 deposit to hold the car for a day. Furthermore, the acceptance was valid because Jim and Laura knew the offer to buy the car would cost them $400.00 each month and the act of giving Stan a $100.00 deposit to hold the car for a day manifested their intention to accept the offer (US Legal, 2012).
Consideration is the exchange of something of value by each party of a contract that persuades the other to enter the contract. The value exchanged does not necessarily consist of currency, but it may consist of a promise to perform an act that one is not legally required to do or a promise to desist from an act that one is legally entitled to do. A courtâ€™s examination as to whether a contract is backed by adequate consideration usually centers more on the promise or performance of the offeree than the promise or performance of the offeror. For this situation, the offeree did not offer benefit to the offeror that would close the deal, but they instead paid a deposit to hold the car for one day. On the other hand, the offeror did not deliver the car to the offeree, but kept the car, waiting for the offeree to return then they close the deal. A valid contract must contain mutual promises or obligation between the parties making the agreem...
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