Research and Describe Did Jim and Laura Buy a Car?
the paper is like a question and answer paper these are the questions.
1. 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.
2. 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.
3. 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.
4. 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.
5. 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:
1.Define the elements of a legal contract using examples from the scenario where applicable.
2.Decide whether or not there was a contract for the purchase of the automobile.
3.Identify the facts from the scenario which support your decision on whether or not a contract exists for the purchase of the automobile.
4.Use at least two (2) quality academic resources in this assignment. Note: Wikipedia and other Websites do not qualify as quality academic resources.
5.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.
Did Jim and Laura Buy a Car?
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Did Jim and Laura Buy a Car?
When dealing with contracts, there exists requisite elements that make them legally binding. These elements include an offer, acceptance, consideration, mutuality of obligation, and competency.
Offer: One main element of a contract is an offer. An offer denotes a promise to act or desist from acting that is made in exchange of a given promise or its performance. It represents an illustration of willingness to enter into a bargain so that the other party understands that there is an invitation to perform a certain promise (Small Business Development Corporation, 2016). For any offer to be valid, there must be a statement showing the intent to commit or enter into a contract. For example, from the case of Jim and Laura, an offer exist where Jima and Laura inform the Stan the salesman that they want to buy a car from his dealership.
Acceptance: Acceptance of an offer occurs when there is agreement to the terms. Acceptance has to be made by the offeree in the way requested or expected by the offeror. An acceptance only becomes valid if the offeree is aware of the offer, offeree shows the intention to accept, and the acceptance is clear and unconditional while it also matches the terms of the offer (Ellenson, 2013). From the case, Jim and Laura showed their interest to purchase a car the moment they agreed to begin test driving the cars so that they could find one that suits their desires. Acceptance becomes evidence when they pointed out that they wanted to purchase the blue 4-door Sedan.
Consideration: The other important element is consideration. Consideration means that something valuable is exchanged for the specific action or non-action (Ellenson, 2013). This means that the other party would be giving something in return whether in terms of money, promise for a service, agreeing not to do something, or a reliance on the promise. This means an exchange would be made between the promisee and the promisor. For example, Jim and Laura made a consideration when they gave Stan 100 dollars as a deposit to hold the car for a day. The exchange of 100 dollars makes it an exchange of something of value that encourages the other party to enter into an agreement.
Mutuality of Obligation: Mutuality of obligation means that the parties should have a mutual understanding and assent to the terms of their agreement. Ideally, the parties have to agree to the same thing, in a similar sense, and at the same time. This element is known as having a “meeting of the minds” (HG.org, 2017). Basically, it must be clear that the parties understood and assent to the basic elements and terms within the contract. When there is a party whose promise does not bind him/her to an enactment or restraint from acting...