Introduction
A binding agreement between parties can be legally enforced if one of the parties violates the terms of the agreement. As a consequence of this, a legally valid contract needs to have several essential components. An offer is present when one party suggests another for a transactional relationship. In addition to being a crucial part of drafting a contract, informing the parties concerned of the terms directly and authoritatively is also necessary. For an offer to be regarded as completely accepted, it is necessary to have the relevant party’s consent (Sieberson, 2022). It points to Stan Salesman as the person who made the offer, thereby designating him as the offeror. Jim and Laura agree that they will give Stan a deposit in exchange for keeping the car for them for a day. Jim and Laura are the offerees, given that Stan is the one who made the offer in the first place. An additional component is the acceptance of the intention to contract or the intention to enter the contract once it has been suggested. Jim and Laura can proceed with the transaction once they have agreed.
Contract to Purchase the Automobile by Jim and Laura
There was a legal contract between Stan the salesman and Jim and Laura to purchase the vehicle. In light of the case study presented, it is clear that Stan, the salesman, Jim, and Laura were all engaged in meaningful conversation with one another at some point. Jim and Laura went on test drives at the dealership they were at to determine which vehicle would be best for them. After that, they talked about depositing to take the vehicle off the market, which would effectively prevent Stan from selling it to any other interested buyer who might have preferred it. The salesman indicated that he had no issues with the terms of the deal, which stated that they would hand over the remaining balance of the money the following day after the vehicle had been held. After being informed of the specifics of the contract and the steps involved in purchasing an automobile, both parties concluded that they could freely agree to the terms. Not the least of the positives, operating a car dealership within the law is possible.
An expression of legitimate permission is required before either party to the agreement may legally enforce a contract. A breach of trust occurs when one of the parties to an agreement believes they were not provided with the fundamental information necessary to agree in good faith (Sieberson, 2022). For one party to be granted legal authorization from the other party, the other party needs to be aware of the terms and ready to assent to them. If this is not the case, then the aggrieved party has the right to revoke the contract. The contract is revoked if there is no rationale for consenting to the terms of the contract and has the same effect as canceling the agreement.
Jim and Laura did not realize until it was too late that they were in a contract to purchase the car until it was already too late. It is possible to make the case that they did not have access to adequate information to give their informed assent to the contract (Valbrune et al., 2019). Despite this, they chose to negotiate the refundable deposit with the salesperson so that the vehicle could be held for them for an additional day while they made their decision. It allowed them more time to think about whether or not they wanted to purchase the vehicle. Even though the couple had already given Stan the deposit, they ultimately opted against buying the vehicle.
Facts Supporting the Decision That There Was a Legal Contract
In light of these circumstances and the other elements that comprise a contract, there was an understanding that Jim and Laura were entitled to purchase the automobile. It would have been considered a breach of the contract on Stan’s part if he had sold the car to any other buyer than the one specified in the agreement. As a direct result, Stan did not take the opportunity to sell the car when he had it because it was being held for Jim and Laura. They decided not to buy the car, which meant that Stan was responsible for covering the cost of the loss resulting from having the car held for them while they considered other options. If they had not requested that the car be kept, Stan would have been able to turn a profit by selling the car to another customer and utilizing the money from the sale to pay for his expenses. To summarize, Jim and Laura agreed with Stan to purchase a car from him, and the arrangement was legally binding.
Conclusion
It is of the utmost importance to comprehend when a contract is formed and whether its provisions bind you. Jim and Laura are in a tragic situation since they did not think their agreement would be legally enforceable. This experience has taught me that, when making a purchase requiring a down payment, it is crucial to be aware of when you agree to the terms of a contract and under what laws the contract is formed. In addition, it is essential to understand the regulations governing contract formation.
References
Sieberson, S. C. (2022). International business contracting: Theory and practice. Carolina Academic Press LLC.
Valbrune, M., Assis, R. D., Cardell, S., Taylor, T. C., Sappleton, N., Mitchell, C. M., & Mitchell-Phillips, K. (2019). Business law I: Essentials.