Running head business law 1 business law5

1. Running Head: BUSINESS LAW
1
BUSINESS LAW 5
Abel Simorangkir Comment by Barbara Lewis: Abel, I look
forward to reading your essay.
Business Law
February 27, 2021
Business Law
Jim and Laura Buyer engaged in an oral agreement that
can't be classified as a contract because it lacked the legal
intent and consideration besides incorporating the other
elements of a contract: offer, acceptance, and competency.
Engaging in a contract must involve physical signatures, but
Jim and Laura never considered the repercussions of leaving
Stan with their $100.00 as the car deposit. Jim and Laura's
contract with Stan was beyond proving because they did not
record anywhere, and Stan could deny getting the deposit from
the prospective buyers. I believe that Jim and Laura didn't study
law, and they gave out money without recording out of anxiety
and love for the blue 4-door sedan car, instead of asking for
Stan's terms and conditions. Stan assured Jim and Laura that the
deposit was refundable but didn't give them a receipt, and no
documents were signed.
Legal Contract Elements
Jim and Laura Buyer could have requested to sign documents as
evidence of the deposit but left the promises, only to come the
next day and find that the deposit couldn't be refunded and was
part of the buying price. Going for a lawyer would make things
more complicated because Jim and Laura don't have any proof
to sue Stan in a court of law. Courts require sufficient evidence
before pronouncing a suspect guilty. The legal contract
elements play a vital role in enhancing customer safety. If Jim
and Laura understood the elements well, they could not have

2. gone forward to give away the $100.00 without recording and
signing a contract form with the salesperson. Contract elements:
offer, acceptance, consideration, legal intent, and competency
protect both businesses and buyers, and I believe could have
secured Jim and Laura's money. Comment by Barbara Lewis:
This Touchstone is not about proof. It’s only an analysis of
contract formation under the given facts. You aren’t being
asked to prove anything.
The offer determines whether both parties agree to engage in a
contract and is accompanied by signing a contract. The
signature determines what the parties intend to do or not do. Jim
and Laura decided to offer $100 to Stan as the deposit and went
ahead to give out the money. The two parties did not sign any
contract, and theirs may not be classified as a contract
engagement because besides the offer being cleared stated, there
was no documentation to prove the agreement. The offer wasn't
clear enough to convince judges in the court because the
contract was imaginary and not specific as legally required. The
acceptance element involves the receiver agreeing on the offer.
Stan voluntarily agreed to acquire the $100 as a deposit but
didn't enter into a contract with the buyers. Elements of
blackmail weren't present nor detected between the parties.
Consideration involves the amount the party pays to complete
the payment. Jim and Laura agreed with Stan that the deposit
would be refundable, but there was no mention of the amount
being topped up to complete the payment. Comment by
Barbara Lewis: What is significant about this statement?
The contract's legality was wanting because Jim and Laura
never bothered to sign any contract and trusted Stan from the
first sight. The buyers didn't seek clarification of how the
money they gave out could be accounted for before giving out
the amount. The parties' intentions seem different because the
buyers gave out a deposit hoping they would get it back in full
amount, but Stan had other plans. The agreement lacked legal
intent: it wasn't legally binding. The agreement was loose with
no intention of one party suing the other in case of a breach.

3. The final contract element is a competency that requires the
parties involved to discover themselves and know what they are
doing, including understanding all the steps, guidelines, and
procedures involved in a contract agreement (Park et al., 2020).
Jim and Laura were not well-versed with the competency
element, and that's why Stan's car company may not compensate
them. Comment by Barbara Lewis: What do you mean?
Comment by Barbara Lewis: What do you mean that it was
loose?
Contract For The Automobile Purchase
A legal contract must incorporate all the contract elements,
from the offer through legal intent to competency. There was no
contract between the buyers and Stan. Both parties should have
entered into a contract by signing a document indicating the
contract's terms and conditions. Jim and Laura orally spoke to
Stan and didn't request any contract agreement but only decided
to trust Stan and leave their money with him to collect the
following day. Signing a contract would have enabled Jim and
Laura to understand that they won't get their deposit back, and
they would have decided not to give out the money for security
purposes. I would advise Jim and Laura not to go to court
because they lack substantial evidence to support their claim.
Stan didn't give the boys a receipt for the deposit, and upon
deciding to call off the agreement, Stan was safer to hold their
money and convince them not to forego the blue car. Going to
court would require evidence, but Jim and Laura didn't have any
proof to show that they gave Stan money and its intended
purpose. The deposit was equivalent to lose because no
documents were signed. Comment by Barbara Lewis: Why is it
important to have a sign document? What law or statute says it
should be signed?
A legal contract involves at least two parties agreeing on a
particular issue that benefits both parties and highlights the
possible deviant consequences (Beatty et al., 2018). Jim and
Laura's agreement with Stan was a car dealership yard

4. communication that involved exchanging money with empty
promises. The boys didn't bother to contract legal measures
because they weren't even bothered when Stan failed to give a
receipt for the $100.00 deposit payment but agreed to go and
come back the following day. A legal contract is a written
document undersigned by the involved parties to mean that they
agree to what is written and are aware of the possible
consequences upon going against the contract. The contract
lacked adequate consideration and legality and looked like
blackmail because the boys left the yard without proof of the
deposit payment. Comment by Barbara Lewis: What boys?
Signing a contract could sue Stan in court because he was
accountable for not giving Jim and Laura back their money.
Enough evidence to prosecute Stan is still the biggest challenge
because everyone knows the truth. Still, courts depend on
documented evidence and can only be satisfied upon acquiring
the contract agreement between Stan and the boys. Contract
agreements are written to prove the agreements between the
involved parties (Kubasek et al., 2019). Stan's contact contained
natural elements that do not require thorough prove but
unfortunately, courts don't recognize oral evidence. I would
advise Jim and Laura not to find a lawyer. Still, just to let the
money go because without adequate evidence, they won't win
the court case besides knowing very well that they gave Stan
money and he breached the oral contract by not refunding the
$100.00 deposit amount. The boys are unwilling to purchase the
car, and the one-day period for the deposit has already elapsed.
This means that in whichever case, they would lose the money. I
would advise Jim and Laura to surrender and make an effort to
study and understand business law to avoid future contract
agreement problems. Comment by Barbara Lewis: You can
have oral contacts. Oral contracts are enforceable by the law.

5. References
Beatty, J. F., Samuelson, S. S., & Abril, P. (2018). Business law
and the legal environment. Cengage Learning.
Kubasek, N. K., Browne, M. N., Herron, D. J., Dhooge, L. J., &
Barkacs, L. L. (2019). Dynamic business law: The
essentials (pp. 28-50). McGraw-Hill Education.
Park, S., Goodwin, B. K., Zheng, X., & Rejesus, R. M. (2020).
Contract elements, growing conditions, and anomalous claims
behaviour in US crop insurance. The Geneva Papers on Risk and
Insurance-Issues and Practice, 45(1), 157-183.
Business Law Touchstone Rubric and Feedback
Rubric Category
Feedback
Score (acceptable, needs improvement etc.)
Contract Definition
Contract law has not been fully defined. The elements need to
be defined (offer, acceptance, consideration, mutuality of
obligation, and legal capacity). The essay should make
connections from the scenario to the definition of contract law
helped strengthen the essay.
5/25
Non-performance
Case Judgement
The essay did decide whether or not there was a contract for the
purchase of the automobile.

6. 19/25
Acceptable
Case Support
The essay did not make the connection to contract law. The
essay did not illustrate why there was a contract by using the
definition of contract law and provide evidence from the
scenario to support the argument.
5/25
Non-performance
Source
The essay met the number of qualified sources. The essay
intermingled the sources into the argument. The course notes
are not one of the qualified sources.
12/15
Proficient
Conventions
There are occasional errors in grammar, punctuation, spelling,
capitalization, formatting, and usage.
8/10
Proficient
Overall Score and Feedback: 49/100
Abel,
The focus of the essay should be on the elements of a contract.
To make a case on contract law, you should define the elements
of contract law and link it to examples from the scenario.
To help organize the essay, I would suggest the following.
1. Introductory paragraph
0. Introduce scenario
0. Summary scenario
0. State if there was a contract and what was the contract?

7. 1. Contract law and the definitions of all of the elements.
1. Offer
1. Acceptance
1. Consideration
1. Mutuality of obligation
1. Legal capacity.
1. Elements and the link to the scenario.
2. Offer – what is the offer in the scenario.
2. Acceptance - what is the acceptance in the scenario.
2. Consideration – what was the consideration in the scenario.
2. Mutuality of obligation – what is the mutuality of obligation
in the scenario.
2. Legal capacity – did the parties have legal capacity? If so,
how is that determined from the scenario.
1. Conclusion – recap essay and case summary.
Please use APA formatting creating your in-text citations and
reference page.
https://owl.purdue.edu/owl/research_and_citation/apa_style/apa
_formatting_and_style_guide/general_format.html
Dr Lewis