Touchstone 2: Did Jim and Laura Buy a Car? SCENARIO:Jim and Laura Buyer visit the local car...

Question

Touchstone 2: Did Jim and Laura Buy a Car?

SCENARIO:

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.

ASSIGNMENT:

In three to five (3-5) pages, advise Jim and Laura based on the above facts as presented and the material covered in the lessons. 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.

In order to foster learning and growth, all essays you submit must be newly written specifically for this course. Any recycled work will be sent back with a 0, and you will be given one attempt to redo the touchstone.

C. Requirements

The following requirements must be met for your submission to be graded:

Composition must be 3-5 pages (approximately 750-1250 words).

Double-space the composition and use one-inch margins.

Use a readable 12-point font.

All writing must be appropriate for an academic context.

Composition must be original and written for this assignment.

Plagiarism of any kind is strictly prohibited.

Submission must include your name, the name of the course, the date, and the title of your composition.

Include all of the assignment components in a single file.
- Acceptable file formats include .doc and .docx.

Tarun · Accepted Answer

1. An agreement reached between two or more people orally is referred to as a verbal contract. Oral contracts and parol contracts are other names for verbal agreements. The word "parol" refers to verbal communication or offering. Verbal agreements are commonly referred to as "handshake deals" because there isn't a written contract and only a verbal agreement is utilised to form the arrangement. Verbal agreements are never recorded or written down. The legality of any verbal contract varies depending on the state in the United States.
A contract can be considered legally binding if it has anywhere between four and six components.  These are the six possible components:
A. Offer and acceptance
B. Legitimate objective
C. Legitimate consideration
D. Terms' degree of certainty and completeness
E. Free consent of the parties
F. Capacity
The components of an effective contract must exist for a verbal agreement to be enforceable. We'll use the scenario of a man borrowing $200 from his Uncle to purchase a bike to demonstrate how the components of a contract result in legally binding terms in a verbal agreement.
A. Offer and acceptance: For there to be a contract, one party must make an offer, and the other must accept it. This is known as a "meeting of the minds" since both parties have consented to these guidelines. In our example, the uncle agrees to give her nephew a loan as long as he pays it back within a reasonable period of time. The nephew accepts her offer and promises to fully reimburse her after purchasing his new bike.
 	
B. Legitimate objective: The purpose of the contract must be lawful. In our illustration, the nephew is borrowing cash from his aunt in order to buy a new bike. As a result, the contract they have is for a legitimate purpose. However,

Touchstone 2: Did Jim and Laura Buy a Car?SCENARIO: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...

Touchstone 2: Did Jim and Laura Buy a Car?

C. Requirements

Answer To: Touchstone 2: Did Jim and Laura Buy a Car?SCENARIO:Jim and Laura Buyer visit the local car...

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