- April 28, 2020
Did Jim and Laura Buy a Car
DID JIM AND LAURA BUY A CAR? 1
Did Jim and Laura Buya Car
For a contract to be enforceable, it must have the followingelements offer, capacity, legality, consideration, acceptance, andmutuality. The element of offer requires that one party to a contractpropose a deal which demonstrates its intention to conduct itself ina particular way(Beatty, Samuelson, & Abril, 2015). In the case ofJim and Laura, the two demonstrated their interest in buying theSedan and Stan was willing to sell it to them. However, none of thetwo parties proposed a deal for either the sale or purchase of theSedan. Instead, the only offer that is evident is that of Stanholding the car for a day in exchange for the couple to give him adeposit of $100. For an offer to exist, two parties must deliberateupon the execution of the contract or how each one of them shouldact. For example, the seller must state the selling price for his/herproperty. Additionally, the two parties involved must deliberate onhow the buyer will make the payment such as through cash or higherpurchase.
In Baer v Chase 392 F. 3d 609, the plaintiff claimed that he hadentered into a contract with the defendant. In the case, thedefendant approached the plaintiff and wanted him to write a scriptinvolving a particular incidentthat would be converted into a television show (Beatty et al., 2015).The plaintiff went ahead and wrote the script which he sent to thedefendant. However, Chase wrote his version of the incident which heused to produce the show. According to Baer, Chase had promised himthat he would remunerate him accordingly in case the television showsucceeded. However, Chase argued that he did not use the script thatBaer sent to him.
When deliberating upon the case, the judge held that the terms of thealleged contract between Baer and Chase were vague. According to thejudge, the terms of an offer should be clear enough to enable thecourt to make a determination on whether or not there was a bridge ofcontract(Beatty et al., 2015). Similarly, the encounterbetween Stan and the couple does not involve an offer for the sale orpurchase of the Sedan.
The second element of a contract is consideration. Considerationentails one entity to a contract promising to do something or desistfrom engaging in a certain action in exchange that the other partywill avail to it something of value. The University of Kansas (2015)defines consideration as either a benefit to the promisor or adetriment to the promisee. Consideration exists in the case of Stanand the couple since Jim and Laura paid a deposit of $100. However,the absence of the offer means that the alleged contract between thetwo parties cannot be enforced.
Apart from consideration, a contract must involve the communicationof acceptance for it to be enforced by a court. Acceptance entailsthe offeree engaging in certain activities that demonstrate his/herintention to enter into a contract with the offeror. This is theelement that Stan is relying upon to make an argument that thecouple’s act of giving him $100 was a demonstration of theirwillingness to buy the car in question. In their defense, Laura andJim could argue that the amount they gave to Stan was to serve as aholding and not a purchasing deposit. According to the ConsumerAffairs and Fair Trading (2015), a court cannot force a promiser tohonor an agreement involving a holding instead of a purchasingdeposit.
In conclusion, Stan and the couple do not have a contract. First,there is no evidence that points to the two entities deliberatingupon the key issues involving the purchase or sale of the Sedan. Forexample, Stan does not disclose the cost of the sedan. Besides, thetwo entities do not agree on how the couple will make the payment forthe car. This means that a court cannot enforce the alleged agreementbetween Stan and the couple since it cannot assess whether or notthere was a bridge of contract. In addition to the absence of anoffer, the couple may argue that the $100 they give Stan was aholding and not a purchasing deposit.
Beatty, J.F., Samuelson, S. S. & Abril, P. S. (2015). Introductionto business law.Boston, MA: Cengage Learning.
Consumer Affairs and Fair Trading. (2015). Buying a new or used motorvehicle. Accessed on November 17, 2016.http://www.consumer.tas.gov.au/fair_trading/motor_vehicles
University of Kansa. (2015). Legal Elements of a contract. Accessedon November 17, 2016.http://hnr.k-state.edu/doc/rres-690/legalelementsofacontract.pdf