Did Jim And Laura Buy A Car?
Sample Solution
Elements of a Contract
There are four essential elements that must be present for a legal contract to exist:
- Offer: A clear and definite statement of the terms of an agreement that the offeror is willing to be bound by.
- Acceptance: An unequivocal acceptance of the offer by the offeree.
- Consideration: Something of value that is exchanged between the parties to a contract.
- Mutual assent: A meeting of the minds between the parties on the essential terms of the contract.
Examples:
- Offer: Jim and Laura say to Stan, "We would like to buy the blue 4-door sedan for $400.00 a month."
- Acceptance: Stan says, "I accept your offer."
- Consideration: Jim and Laura give Stan a $100.00 deposit, and Stan agrees to hold the car for them.
- Mutual assent: Both parties agree on the price of the car, the monthly payments, and the terms of the deposit.
Facts from the Scenario
Jim and Laura visited a car dealership with the intention of buying a new car. They test-drove several vehicles and particularly liked the blue 4-door sedan. They agreed to give Stan Salesman a $100.00 deposit to hold the car for a day. No documents were signed.
The next day, Jim and Laura decided that they did not want to buy the car and requested their $100.00 deposit back. Stan Salesman insisted that the $100.00 was a deposit on the car and was meant to be part of the contract to buy the car.
Was There a Contract for the Purchase of the Automobile?
Based on the facts presented, it is unlikely that a contract existed for the purchase of the automobile.
Offer: Jim and Laura made a clear and definite offer to buy the blue 4-door sedan for $400.00 a month.
Acceptance: Stan Salesman accepted the offer when he took the $100.00 deposit from Jim and Laura.
Consideration: Jim and Laura gave Stan a $100.00 deposit, and Stan agreed to hold the car for them.
Mutual assent: However, it is questionable whether there was mutual assent between the parties. Jim and Laura intended to purchase the car, but they changed their minds before the deal was finalized. Stan Salesman may have believed that there was a contract, but Jim and Laura never intended to be bound by the agreement.
Conclusion
It is unlikely that a contract existed for the purchase of the automobile. The element of mutual assent is questionable, as Jim and Laura never intended to be bound by the agreement. Jim and Laura should be able to get their $100.00 deposit back.
Advice to Jim and Laura
Jim and Laura should contact Stan Salesman and demand the return of their $100.00 deposit. If Stan refuses to return the deposit, Jim and Laura may need to file a lawsuit in small claims court.
Jim and Laura should also keep a copy of all documentation related to the transaction, such as the receipt for the deposit and any text messages or emails between them and Stan Salesman. This documentation will be helpful if they need to file a lawsuit.