Did Jim And Laura Buy A Car

840 words - 4 pages

November 10, 2015

Contracts:
A contract is an agreement that creates obligations that are enforceable by the law. A contract can either be written or spoken. There are elements to a contract that make it valid and binding. This is defined as a clear manifestation of willingness to enter an agreement made by another person with full understanding that their assent to the bargain is an invitation and is concluded. As to whether there was an offer in this case, yes there is an offer. When the salesman offered the buyers time for a test drive and they finally chose and agreed to buy the blue car it was a clear offer.
Acceptance. This basically means that the terms of the offer have been clearly understood and agreed to through consent and assent and at no time will the terms be changed. When the buyers agreed to the terms of sales and even agreed to pay a deposit, it clearly shows that they have accepted the seller’s offer. Legal purpose. It means that the reason for the contract must be legal. In this case, the sale and purchase of a car from a licensed dealer is legal and done under the regulations specified by law.
Mutuality of obligation. This refers to the parties’ mutual understanding and also assents in expressing their agreement. They must both agree to the same sense, same thing ant also the same time. When the two buyers approached a dealer seeking to purchase a car, there was both an offer and acceptance. There was clear communication between the terms of the buyer and the seller and were both in mutual agreement.

Consideration is basically the benefit to the person making a promise or the person to which the promise is intended for. In this case, both the buyers and the seller agreed to the terms and conditions of the agreement leading the buyers to make a deposit of an amount as proof of consideration. Consideration is sometimes not put in monetary value.
Competent parties. This basically means that the parties to the contract must be of a sound mind and have attained the required age by law. As of whether the parties were of a sane mind, yes they were to allow them capacity to seek purchase of a new car and also agree to the terms and conditions of the sale.
Contract in place:
Whether there was a contract of purchase of a car? The law puts clear guidelines that before there exists a contract that is binding, there has to be an...

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