Jim and Laura Business Case Study
Jim and Laura and the Salesman Case Study
Jim and Laura were interested in purchasing a new vehicle from one of the local vehicle dealerships. At that time they were having a vehicle which was aging at that time and it was having automated problems. They were looking forward toward sharing the vehicle after the purchase where they could use the car for their daily activities which include the moving in and out to work as well as to school. Just before they visited the dealership, they decided that they could only afford a car that would cost $400.00 per month for the payment of the vehicle. At their in their arrival in the vehicle dealership, they met Stan who was a Salesman who showed them a number of vehicles and they were able to test-drive a number of the cars. They specifically liked a sedan type of car that was blue in color and a four-door type of car. They thus agreed to give Stan a $100.00 down payment that would hold the automobile for just a daytime. Writers who offer at Edudorm essay writing service notes that business accounting assignment help Stan failed to offer them the receipt however, he guaranteed them that the $100.00 cash that they had given as deposit would be refundable and hence no documents were signed between the two parties. The following day, the salesman called Jim and Laura so as to confirm when they wanted their car to be delivered. However, at the time that they were leaving the dealership, they had thought about spending their money monthly on the purchasing a car but they ended up deciding that they would not purchase the car. Thus upon Stan calling them, that’s when they told him that they were not going to purchase the vehicle and they requested that the amount that they had left as deposit shout be refunded to them. Stan, therefore, insisted that the deposit that they paid was meant to be a portion of the agreement to purchase the vehicle.
He persists and insists that they had contracted the car and thus their deposit would be applied to the buying price of the vehicle. This makes Jim and Laura to be angry since they don’t want to expend the money and still they have a feeling that Stan is duping them. This paper, therefore, will examine the case and it will give some of the elements of a legal contract supported by examples and it will determine whether there was a contract in the case and it will be supported by evidence.
A Contract in Jim and Laura and the Salesman Case Study
A contract basically refers to a legal obligatory agreement that is entered willingly by two or more parties and they are collective elements that are used in commercial law. An agreement can either be oral or written and in this case their contract was verbal with no documentation. A legal contract, therefore, must demonstrate four main elements (Helewitz 2007). Offer is one of the elements in a contract and it involves a clear expression of willingness that makes one enter into an agreement that is made by another person with the full knowledge of the promises made by one of the parties to fulfill something or to avoid a certain action (Blum 2007). Experts who offer business essay help at Edudorm essay writing service indicates that in this case, Jim and Laura entered into an offer when Stan proposed to keep the car that they had selected for a day. Also, they were offered a chance to test-drive the car that they had chosen and they agreed to purchase the car. Acceptance is another element of legal contract that primarily means that the terms and conditions of the offer are well understood and t\hey are clearly agreed upon by the parties through consent as well as assent and there is no chance of changing the agreement (Helewitz 2007). This happened the moment the buyers agreed to pay a deposit of $100.00 which meant that they had accepted the offer set before them by the seller. Consideration is another element of a contract and it involves the valuable action or the traded item for the specified offer this can be informed of cash, service, and confidence on the contract (Blum 2007).
According to the description of the arrangement between the two parties, there is the aspect of consideration as the buyers agree to pay a deposit so that the salesperson can hold the car for them and in the same manner; Stan indicates that the deposit would be refundable to them. Mutuality is another element of a legal contract that involves the smooth exchange of the product in the sale where all parties agree to the terms of their arrangement without hidden clauses contained in the contract (Helewitz 2007). In this case, the salesman had agreed to refund the deposit paid by the buyers but later on he changes his stand when the buyers make an opposite decision towards their initial decision to buy the car.
Agreement in Jim and Laura and the Salesman Case Study
Though there was an agreement that was made between the two parties, the salesman played his role through contacting the buyers so as to close the deal. However, when the deal failed to close he felt that the deposit money was a form of commitment into their agreement. However, this might not be the case since there were no committing documents that were made by the two parties. Therefore, this kind of agreement was a mutual form of arrangement that would be canceled willingly by any of the two parties since there was nothing that did bound them. Authors who offer business law case study help at Edudorm essay writing service points that in their negotiations, they had agreed that the 4100.00 was purposely for deposit and the salesman failed to mention that the cash was to be included in the purchasing arrangement. Moreover, a legal contract is something that must be lawful so as to bind more than two parties basing on the requirements of the law. Thus in the absence of written documents such as the receipts, the buyers, Jim and Laura had the right to withdraw their initial decision to purchase a car and hence it obliged the salesman, Stan to refund back the money to the buyers.
Negotiations in Jim and Laura and the Salesman Case Study
According to consumer affairs and fair trade, they explain that the holding deposit does not force one to proceed with the purchase of a product but rather it ensures that the product is not sold to another buyer while you are still considering the option. Basing on the agreement the deposit can be either refundable or non-refundable and negotiations on the duration to which one wants the holding process to take. Tutors who offer business development assignment help at Edudorm essay writing service acknowledges that in this case, Jim and Laura had the right to change their mind on the purchase since the holding deposit did not oblige them to purchase the vehicle and they had the right to consider their purchase hence their deposit was supposed to be given back to them. They had a limited time of a day in which they changed their mind and this is allowed by law since the holding deposit is majorly limited by time. They had not agreed on a purchase deposit hence their deposit was supposed to be refundable.
An offer can be terminated when the party offered rejects the offer offered by the one who is making the offer and it is only considered effective when it has been communicated to the one offering it. Mentors who offer 4P of marketing assignment help at Edudorm essay writing service recognizes that once the party offered the offer communicates the revocation of the agreement to the party offering the offer it means that there is no reason for the one offering the offer to believe that the offer may be accepted. Hence there can no longer be a valid legal contract between the two parties. Thus in the cases of Jim and Laura, after their revocation of the agreement they communicated the information to the salesman meant that there was no valid legal arrangement between them and hence they ought to have been refunded.
Conclusion
It is important for any buyer to understand the laws that guide any contract before contracting anything with any seller. In doing this, cases such as the one of the Jim and Laura will not occur to anyone since all buyers understand the law well. This will also aid in reducing the exploitation from the sellers who are always determined in closing deals so as to make profits while the innocent and ignorant buyers end up suffering and losing so much of their fortune as they do not have knowledge of the legal contracts and how they are applied while purchasing vehicles. It is thus important to note that Jim and Laura had a right to do what they did and they had a right to the refund of their deposit.
References
Blum, B. A. (2007). Contracts: Examples & explanations. Austin: Wolters Kluwer Law & Business.
Helewitz, J. A. (2007). Basic contract law for paralegals. Austin: Wolters Kluwer Law & Business Aspen Publishers.
