A legal contract should contain somethings, like for example there are elements that define the contract. People take things lightly and most times they do not consider making a contract during their transactions, and if they make one, it’s often not a serious one. One of the key element of a contract is offer and acceptance; this is to say that one of the parties should offer the contract and the other party should be ready to accept the contract and all it contains.
When one accepts it means that all the terms and conditions stated in the contract they are ready to abide by them. If they do not abide by the rules or they are not ready to fulfill them then, the acceptance is viewed as a rejection. From the example, Jim and Laura did not accept because they changed their minds after a while for the simple reason that they would waste a lot of money paying for the car. Therefore there was no biding contract between them and Stan.
Legal capacity is another element of a contract. This is to say that both parties should be of sound mind while entering into the contract. A person who is mentally impaired is most likely to make a wrong decision during making the contract. In such an instance the contract can be invalid since the mental state of one party is in doubt.
In the case of Jim and Laura and the other party who is Stan, both of them are of sound mind. They can make the quality judgment of the contract, and therefore the contract cannot be invalid. They both knew what they were doing and what they wanted, if a judge or court were to determine the validity regarding judgment making, then it would be valid.
Neither were they minors, people under age can also make the contract invalid, or it can cause some problems while in court. Another element is consent this is the act of free will. The contract should consider the aspect of free will this is to mean that no one should have been forced to enter into the agreement or the contract. In such a situation it will no longer be a contract of consent rather forced.
Jim and Laura, we not forced by anyone into purchasing the car, it was out of their free will that they saw it was best if they had a car. Neither was Stan forced to sell the car, he was just doing what he does. Therefore there was free will, it’s because of this free will that even gave Jim and Stan the chance to withdraw from buying the car.
The contract was also legal in the eyes of the common law because it did not contradict with the safety of the public. This is also another element of a contract, the fact that there was no harm or intention of harm to the public. There are some contracts that are made about committing a crime or fraud. Others are on the basis of sexuality in that they are sexually immoral; others are intended to bring harm to the public or make the relationship between states worse.
In Jim and Laura’s case, there was no intention of harm to the public. Therefore, it was safe. If an agreement had been reached then, it would be an approved contract since it has satisfied the fact that it’s not harmful to anyone. It involved the purchase of a car only thus no harm.
A contract should be simple and easy to understand; it should have well-stated rules and regulations that both parties can comprehend. A complex and complicated contract is not easy to understand and can make one party fall out of the deal simply because they do not understand what is stated in the contract or what it entails.
Jim and Laura’s contract with the sales person Stan was not simple or comprehendible. This is why when Jim and Laura decided to back out of the deal and be refunded the one hundred dollars they had given Stan as a deposit to hold the car for a day. On the other hand, Stan is persistent that it was a deposit to be part of the payment of the car. The contradiction between the two parties was brought about by the lack of understanding between the two parties.
They had not clearly understood each other, and they, therefore, had different thoughts when they were making the deal. They did not have rules and regulations that governed their deal, if they had well-set rules, then they would have come to a common conclusion, and both would have known how to handle each other.
There should be mutuality, and this is what lacked in the contract between Jim and Laura and the sale person Stan. They did not understand the basic terms of the contract. It helps in case there is some misunderstanding between the parties involved like in this case. If there were understanding, it would have helped to ease the problem-solving process.
There is also an element of consideration. This is the amount that is paid for the promise of the other party. The amount paid or the price should be something of value but not necessarily money. Something is given and a promise to give something else in return.
In the case of Laura and Jim and the sales person, it was money in exchange for the car. The consideration, in this case, had not been reached because the terms according to Jim and Laura was that the money they gave out would be used to hold the car until they make up their mind if they wanted a car. They later decided to withdraw from the deal. Therefore, it’s expected that the sales person should return the deposit. In such a case nothing was exchanged for another.
A contract does not necessarily have to be written, as long as there are elements guiding the agreement then it’s a contract. In this case, there was no contract since the agreement was not reached, there was also no mutual understanding between the two parties.
It’s, therefore, advisable for the couple to seek help since that would be extortion of money because there was no contract made between the two parties. Therefore if an agreement was made, then there was no contract made between them. Therefore, Jim and Laura did not buy the car since no agreement was reached.