Help me please

User Generated

Wnzvrs87

Business Finance

Description

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:

  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.

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Attached.

Running Head: CONTRACT REQUIREMENTS
Contract Requirements
Student Name:
Professor Name:
Course Name &Number:
University:
Paper Due Date:

1

CONTRACT REQUIREMENTS

2
Elements of a contract

A contract is a legally binding agreement between two or more parties. For a contract to
be deemed valid and legally binding, there are numerous elements that must be met. These
elements include; an offer, acceptance, consideration, mutual agreement, contractual capacity,
willingness, as well as legality (Burton, 2009). The offer is the first step in forming a contract.
After visiting the car dealer, Stan shows both Jim and Laura numerous cars and after test driving
several, Jim and Laura like the blue 4-door sedan. The provisions of numerous cars in the facility
were an offer from Stan to Jim and Laura to purchase the car of their preference.
The next element of a contract is consideration. Consideration entails giving something
of value such as money or promise that entices the parties to go into into the contract. For Jim
and Laura, nothing of value was given by either party (Burton, 2009). On the contrary, Jim and
Laura gave Stan $100 in order for him to hold the car for a day. Jim and Laura did not promise to
buy the car that would meet the requirement of consideration in forming a contract. On the
contrary, they gave the money as a refundable deposit for Stan to hold the car for a day. Since
the deposit was refundable, it means that the parties didn’t agree to complete the parts of the
contract and Jim an...


Anonymous
Great study resource, helped me a lot.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Related Tags