Pros And Cons Of Contract Law

The sale of a movable item such as a car is a transaction that is meant to benefit the seller and the buyer. In this case, the sale of the blue 4-door sedan was to benefit both the local car dealership and Jim and Laura. However, the sale transaction did not proceed smoothly. Problems arose when Jim and Laura reneged to accept the delivery of the car even after they had made an initial deposit of $100.00. Interpretation of the contract law is helpful in understanding the outcome of this scenario.
Elements of a Legal Contract
For the sale goods such as cars a contract can be made in any style provided it shows agreement between the seller and buyer. The formation of a legally binding contract must meet several requisite elements that include

Mutuality of obligation requires that both parties are compulsorily bound to perform their obligations under the contract. Both Jim and Laura, and Stan Salesman were mutually obligated to fulfill their obligations to the contract. Stan Salesman guaranteed Jim and Laura that the car would be held for a day. Jim and Laura were obligated to accept the delivery of the car.
Competency and capacity to initiate a contract is an important element for a contact to qualify as legal. A person who enters into contract agreements possesses the full legal capacity to assume complete liability for his or her duties to the contract. Exceptions include if the person is intoxicated, mentally incapacitated or a minor (Pratt, 1987). There are no indications that Stan Salesman, Laura, and Jim did not possess the complete capacity and competency to enter into the contract.
A written instrument is required in some circumstances to make a contract valid. However, not every contract requires written instruments. A contract can be made in writing or orally provided both parties acknowledge the existence of the contract (Killarney House Cork,

First, the contract was made orally between Stan Salesman, and Jim and Laura. Both parties also acknowledged the existence of the agreement to purchase. Second, the parties were competent enough and possessed the complete capacity to enter into the contract. There is no indication that the Stan Salesman, Jim, and Laura were minors, intoxicated or were mentally incapacitated. There was an exchange of consideration to validate further the contract. Jim and Laura paid $100 to Stan Salesman as a deposit that would ensure that the car is held for a day. Also, Stan Salesman accepted the contract conditions by promising that the $100 paid as a deposit would be refunded. Furthermore, Jim and Laura made an offer to purchase the blue 4-door sedan car after test-driving several cars at the dealership. The made the offer with the full knowledge that they will afford the monthly payments for the car. At the back of their minds, Jim and Laura had decided to commit $400 a month in car