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Did Jim and Laura Buy a Car

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Kaitlin Vollmer Business Law Touchstone 2 10/23/20 Did Jim and Laura Buy a Car? It is essential for both the buyer and the salesman to understand a contract's meaning, as a contract can get comp licat... ed if uneducated. A contract is a legally enforceable promise, and if broken or walked away from the obligations under a legally binding agreement, you will then be open to legal action. A legal contract must have all parties agreeing about an offer made by one side of the party and entirely accepted by the other party's other side. A legal contract must include something of value exchanged for something else of value. There are four elements that make up a valid contract; this consists of an agreement, capacity, consideration, and intention. While explaining these four elements, I will discuss whether Jim and Laura meet these requirements. Agreement: This is when one party is making an offer, and the other parties accept the terms. After this is discussed, the offer's acceptance must be unconditional (signature) and must be communicated. In this case, Jim and Laura did not sign any contract making it absolute, but they did understand the holding deposit of $100.00. Capacity: This explains that all parties must understand the terms and obligations under the contract. Based on the scenario, Laura and Jim did not understand the responsibilities of putting down $100.00 as Stan did not explain the commitment of what the $100.00 was for (miscommunication). [Show More]

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