Did Jim and Laura buy a car?
Elements of a legal contract
A contract is a binding legal agreement that is enforced by the courts, and the breach of promises contained in a contract results in remedies. The promise then represents the intention of the parties to act in a certain way or refrain from doing specified acts. There are remedies for breach of contractual obligations. In choosing to test drive the sedan, the potential buyers initially accepted the offer, but along the way they believed that a $400 monthly payment was unaffordable. The parties in a contract reach an agreement that is sufficient, valid and enforceable. Beatty & Samuelson (2013), identify the main requirements of a contract.
Mutual ascent: the parties in a contact mutually agree to the terms of a contract by words or conduct as represented by offer and acceptance. The parties accept the offer by both consenting and assenting without being forced to enter into agreement.
Consideration: the parties in a contract exchange legal benefits in return