Legal Contract 5 Assignment: Legal Contact XXXXXXXX LEG 100

LEGAL CONTRACT 5 Assignment: Legal Contact XXXXXXXX LEG 100 – Introduction to Business Law

Offer and Acceptance

The creation of a contract requires an acceptance of an offer between two parties (Frey & Frey, 2001). One essential characteristic of the proposal in a legal agreement is the presence of the readiness to negotiate or bargain by both parties involved. For example, in the scenario, if Stan offers to sell Jim and Laura a car, he should be ready to also bargain and negotiate on the final price point. If one of the parties decides not to respond, as Jim and Laura did, there is no legitimacy restriction bound within the contract between Stan, Jim, and Laura, on the basis that their offer made in part not definitive.

Jim and Laura did not provide their acknowledgment to the terms of the deal placed before them. Offers are not tied to individuals as they can also be applied to groups of people and institutions as well. For an offer to be considered as valid, there has to be an element of acknowledgment from the parties involved, of the particular product or service that is on the table (McKendrick, 2017). Case in point would be if Stan offered Jim and Laura a vehicle for a certain amount, and do not provide the necessary document depicting the roadworthiness of the vehicle. In such a case, if Stan fails to provide the requested documents, then Jim and Laura have the ability not to tolerate the offer and can place a counteroffer in return, which is up to Stan to accept or deny.

Withdrawal of offers is a common occurrence in the business world but should ensure that it adheres to specific criteria. In a case where one party decides to withdraw their offer, they have to ensure that they notify the other party involved of their withdrawal. Examining the process of removal from our scenario, if Stan, therefore, notifies Jim and Laura that he will talk to his manager about providing the roadworthiness documents, and in the process, the couple decide that they would instead withdraw from the agreement, their decision is valid and by merely notifying Stan is enough for the contract to be non-binding.

Another important aspect of a legal contract is the acceptance or acknowledgment of the terms and conditions. There are various methods that one part can accept a legal agreement, for example, through actions that they take or through an announcement. The process of acceptance ought to be clear, that is, without any ambiguity, and the law clearly states that when one party does not dismiss an offer, it does not mean that they have accepted or acknowledged it, and this is an essential aspect if one fosters to understand the boundaries placed on legal contracts by the law (Poole, 2016).

Legal Formal Association

The existence of a contract cannot be placed on only the grounds of understanding between two parties, without the presence of a plan to legally formalize the agreement. Circumstances surrounding the properties on which the contact was made do not also form the basis for its legality. A good example that offers further understanding into this point would be a case in point where one agrees to offer their colleague a ride in their vehicle; this cannot be considered as a legal binding contract, but if the two agree to split the costs associated with the journey, for example, fuel, then this forms the basis for such an agreement from a legal standpoint.

Consideration, Maturity of Obligation, and Consent

Consideration is related to the cost that is paid for the fulfillment of the contract. Cost should not necessarily be regarding cash (McKendrick, 2017). Applying this element to the scenario, if Jim and Laura decided to hire a vehicle from Stan for a specified amount, this would be the consideration. The maturity of the obligation, on the other hand, relates to a discussion of the agreement, including the consent of the substances and elements of the deal.

Consent implies commitment, which also means that the parties involved in the contract settle on the agreements under the terms and conditions. Not all contracts ought to be in written form, but the law provides a distinction for such for them to be enforced, under what is typically referred to as the statute of frauds.

Conclusion

When examining the case of Stan, the salesman, and the couple, Jim and Laura, the was a contract. The type of deal that existed between the two parties is what is referred to as an oral contract, and its validity can be considered through the examination of the circumstances surrounding the development of the contact. Jim and Laura agreed to the contract the moment that they placed the $100 deposit for the said vehicle, and exercised commitment on their part.

The deposit was meant to be part of the contract to buy the vehicle, and therefore under the contract, Jim and Laura had purchased the car. The fact that they changed their mind after the fact, and they were aware of the contract in place, then they were legally bound and had an obligation to a bid by the said contact between them and Stan.

References

  • Frey, M. A., & Frey, P. H. (2001). Essentials of contract law. Albany, NY: West/Thomson Learning.
  • McKendrick, E. (2017). Contract Law.
  • Poole, J. (2016). Textbook on contract law. Oxford: Oxford University Press.

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