Understanding of Contract Law

Touchstone: Did Jim and Laura Buy a Car?
SCENARIO:
Jim and Laura Buyer visit the local car dealership because they are
interested in buying a new car. The car they currently have is aging and
is starting to have mechanical problems. Jim and Laura would share the
new car, and use it to go back and forth to work and school. Before
going to the dealership, Jim and Laura decide that they can only afford
$400.00 a month in car payments.
Once
at the car dealership, Jim and Laura meet Stan Salesman. Stan shows
them several vehicles and Jim and Laura test-drive several of the cars.
Jim and Laura particularly like the blue 4-door sedan. Therefore, they
agree to give Stan Salesman a $100.00 deposit to hold the car for a day.
Stan Salesman does not give them the receipt but guarantees that the
$100.00 is refundable. No documents were signed.
The
next day, Stan Salesman calls Jim and Laura to ask them when they would
like to take delivery of the car. Jim and Laura, on the way home from
the dealership, decided that they were not going to buy the car because
they did not want to spend that money each month. Therefore, Jim and
Laura tell Stan Salesman that they have decided not to buy the car and
request their $100.00 deposit back.
Stan
insists that the $100.00 was a deposit on the car and was meant to be
part of the contract to buy the car. Stan is very persistent and
insistent that Jim and Laura have contracted to buy the car; therefore,
the $100.00 will be applied to the purchase price of the car. Jim and
Laura are shocked and angry as not only do they not want to spend the
money, but now feel as though they are being duped by Stan Salesman.
Jim
and Laura have an appointment to see a lawyer in a few days, but know
you are a student taking a business law class and come to you for
advice. They are very frazzled, and understandably upset that they may
have just purchased a car. Since you have been taking business law, you
have read and understand the elements of a contract and the defenses to a
contract. Therefore, although you are not a lawyer, you provide some
basic advice from what you’ve learned in your business law class.
ASSIGNMENT:
In three to five (3-5) pages, advise Jim and Laura based on the above
facts as presented and the material covered in the lessons. In your
paper, be sure to address the following:
Define the elements of a legal contract using examples from the scenario where applicable.
Decide whether or not there was a contract for the purchase of the automobile.
Identify
the facts from the scenario which support your decision on whether or
not a contract exists for the purchase of the automobile.
Use at
least two (2) quality academic resources in this assignment. Note:
Wikipedia and other websites do not qualify as quality academic
resources.
In
order to foster learning and growth, all essays you submit must be
newly written specifically for this course. Any recycled work will be
sent back with a 0, and you will be given one attempt to redo the
touchstone.
A. Assignment Guidelines
DIRECTIONS: Refer to the list
below throughout the writing process. Do not submit your Touchstone
until it meets these guidelines.
1. Understanding of Contract Law
❒ Have you defined the elements of a legal contract?
❒ Have you used examples from the scenario to illustrate these elements?
2. Case Judgment and Support
❒ Have you provided a judgment on the existence of a contract in this scenario?
❒ Have you used specific examples from the scenario to defend your position?
3. Research
❒ Have you referenced at least two academic sources in your essay?
❒ Have you explained how each source relates to and supports your judgment on the case?

Composition must be 3-5 pages (approximately 750-1250 words).
Double-space the composition and use one-inch margins.
Use a readable 12-point font.

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