Business Law

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Wisconsin Lutheran College *

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303

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Law

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Apr 3, 2024

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docx

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3

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Elisabeth Peterson Business Law March 11 th , 2024 PART 1: Contract Definition Identify and define elements of a legal contract: 1. Offer: An offer is a clear indication by one party (offeror) to another party (offeree) expressing a willingness to enter into a contract under specific terms. For example, in this scenario, Stan Salesman showed Jim and Laura the blue 4-door sedan, indicating an offer to sell it to them. 2. Acceptance: Acceptance is the offeree's agreement to the terms of the offer. It must be unconditional and mirror the terms of the offer. Jim and Laura expressed their interest in the blue sedan and gave a $100 deposit to hold it, which can be considered acceptance of the offer. 3. Consideration: Consideration is something of value exchanged between parties to a contract. It can be money, goods, services, or a promise to do (or not do) something. In this case, Jim and Laura's promise to pay $400 per month for the car serves as consideration. 4. Intent: Both parties must have a genuine intention to create a legal relationship. In this scenario, it's evident that both Jim and Laura, as well as Stan Salesman, intended to enter into a contract for the purchase of the car. 5. Capacity: Each party must have the legal capacity to enter into the contract. This means they must be of legal age and sound mind. There's no indication in the scenario that Jim, Laura, or Stan lack the capacity to enter into a contract. Reference: Clarkson, K. W., Miller, R. L., & Cross, F. B. (2020). Business Law: Text and Cases - Legal, Ethical, Global, and Corporate Environment (16th ed.). Cengage Learning.
PART 2: Case Support Determine and discuss the facts from the scenario: 1. Offer: Stan Salesman showed Jim and Laura the blue 4-door sedan, indicating his willingness to sell it to them. 2. Acceptance: Jim and Laura expressed their interest in the car by test-driving it and giving a $100 deposit to hold it. 3. Consideration: Jim and Laura agreed to pay $400 per month for the car, which constitutes consideration for the contract. 4. Intent: Both parties intended to enter into a contract; however, the misunderstanding arises regarding the nature of the deposit. 5. Capacity: There's no indication that any of the parties lack the legal capacity to enter into a contract. The key fact supporting the existence of a contract is the meeting of minds between Jim and Laura and Stan Salesman regarding the purchase of the car. However, the disagreement arises over the nature of the $100 deposit. PART 3: Case Judgment Based on the facts presented, there was likely a contract for the purchase of the automobile between Jim, Laura, and Stan Salesman. The elements of offer, acceptance, consideration, intent, and capacity are all present in this scenario. However, the issue of whether the $100 deposit constitutes part of the purchase price or was merely a holding deposit is debatable.
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