The contract law

A contract refers to a voluntary agreement amongst two or more parties that is lawfully enforceable as a legally binding agreement. There are numerous elements of a contract that should be met for any contract to be legally binding among the parties involved. These components contain supply and acceptance, consideration, capacity and competency, mutual consent and writing requirement. The terms of a contract have specified meanings. Some contracts spell out the benefits that that are derived by third-party beneficiaries or instill needs on third-celebration obligors.

Contract law also specifies the future functionality obligation of a third celebration that need to take place to satisfy the contract. The law also supplies treatments and defenses for non-efficiency for the parties involved. In relation to the case study “Di Jim and Laura Get a Car”, this paper will define the components of a legal contract utilizing examples from this scenario exactly where applicable. In addition, this paper will also decide whether or not or not there was a contract for the buy of the automobile and also recognize the details from this situation which help the choice on whether or not or not a contract exists for the purchase of the automobile.

According to Smith and Atiyah, for any contract to be legally binding, it need to have the 4 components of a contract. The first element in a contract is offer and acceptance. An provide expresses the willingness of an offeror to contract on a certain set of terms with the intention that in case the offer you is accepted, he or she will be legally bound by the contract. On the other hand, an acceptance expresses an absolute and unconditional agreement with every term outlined in an supply. In fact, an acceptance can be in writing or oral. As such, from the scenario supplied, there was an offer you and an acceptance from each parties because Jim and Laura agreed to pay $one hundred to Stan in order to hold the vehicle for a day.

In addition, one more element of a contract that exists in this situation is a consideration. A consideration refers to a guarantee of one thing that has a value that is supplied by a promissor for the exchange of some thing of worth provided by the promise. Therefore, in a legally binding contract, every party ought to get some thing of value and the consideration provided have to also be enough (Beatty, Samuelson & Sanchez Abril, 2016). From the scenario, a consideration exits since there was an exchange of a car for $100 deposit. In addition, capacity and competency is yet another element of a contract. According to Kronman, for any contract to be enforceable at law, the parties involved need to have the legal capacity to enter into any contract. As such, exactly where the parties involved are all-natural persons, they must attain the majority age and should also be competent. Jim and Laura and Stan have the legal capacity and competency to enter into a contract. Besides, writing needs and formalities is another crucial element of a contract. A written contract should be signed by all parties involved.

Nonetheless, a contract could be oral. An oral contract can either be implied in facts or implied in law. In an implied in truth contract, the parties involved get the advantage of the bargain. Considering that there have been no documents signed by Jim and Laura and Stan, the contract was oral as effectively as implied in fact due to the fact there was a advantage of the bargain among them (Beatty, Samuelson & Sanchez Abril, 2016).In relation to the elements of a contract, it is evident that there was a contract for the obtain of the automobile in between Jim, Laura, and Stan. Firstly, there is an element of capacity and competency in the contract for the obtain of the automobile. This is due to the fact that each parties are not minors and consequently have the legal capacity to enter into any contract (Kronman, 2010).

Additionally, as all-natural persons with sound minds, Jim, Laura, and Stan are competent enough to enter into the contract for the purchase of the vehicle. Therefore, this element proves that there was a contract for the obtain of the auto. In addition, the element of consideration also exists in between the parties in the contract for the obtain of the vehicle. For a single, every celebration in the contract received some thing for worth. For instance, Stan received $100 in exchange for Jim and Laura to hold the car for 1 day. This consideration was adequate and also moved from the promisor to the promisee. Hence, with regards to consideration, then there was a contract for the obtain of the automobile amongst the two parties (Smith & Atiyah, 2008).In addition, there was a mutual consent amongst the parties that prove that a contract for the buy of the automobile exists in between Jim, Laura, and Stan because the purchasers agreed to spend the down payment which was then accepted by the seller.

Furthermore, the contract between the parties existed since there had been an offer and an acceptance of one thing of worth. This is proof simply because Stan provided the car to Jim and Laura who in turn, paid $one hundred as a deposit to hold the car for 1 day. According to the law of contract, any agreement is legally binding and enforceable at law if there are an supply and an acceptance in between the parties involved. Moreover, even although the contract for the obtain of the automobile was oral, it is still legally binding and enforceable at law because it was implied in reality (Smith & Atiyah, 2008).

In sum, the contract for the purchase of an automobile exists among Jim, Laura, and Stan since the elements of a contract have been met in the arrangement. The existence of an supply and an acceptance and consideration binds the two parties to the contract for the buy of the automobile. Also, the legal capacity, competency of the two parties and the existence of mutual consent between Jim, Laura and Stan proves that a contract for the buy of the automobile exists in between them as specified by law. Therefore, Jim and Laura are legally bound by the contract for the obtain of the auto they entered with Stan.