Contract Creation and Management Simulation Coursework

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Introduction

A valid contract exists only where there is mutual assent to an offer and acceptance, as well as sufficient consideration. An offer is an expression of willingness to enter into a legal contract. The offer must be definite and unambiguous. The offer must also be communicated clearly with no uncertain terms. An offer can, therefore, be accepted by a person who knows about the offer or the person to whom the offer was made. Acceptance can be made in different forms, as well as by the mere implication of starting performance. Consideration is the legal determinant of a valid contract that has been bargained between the two parties willing to enter into a contract.

A contract must also exist lawfully in all its elements to be enforceable; therefore, the objects of the contract must be lawful. In the instant case, the fundamental necessities of a contract exist, but whether or not the contract was valid or not warrants the analysis of each element of the contract.

Offer

Having highlighted the elements of an offer, it is important to look at this element using the circumstances of the script. Bob as a car dealer undertakes to enter into a contract by expressing the willingness to sell the cosigned car at a specific price that he quotes (Martin, 2012). There is communication with Mike, the prospective buyer of the vehicle. There is also a definite price and time within which the buyer intends to deal with Mike. Notably, all the elements of an offer have been met; therefore, Bob made a valid and unambiguous offer.

Acceptance

Bob is fully aware of the subsisting offer that has been made to him by Mike. He has interrogated and discussed the price with Mike. However, an acceptance in this scenario must be assessed from the specifics of the communication between Mike and Bob. The communication, as indicated, was made through phone and email before the two parties finally met and settled on a figure. The amendment of the UCC Article 2A anticipates such a scenario as equivalent for enforcement purposes (Uniform Law Commission, 2012). The two parties are in a contractual relationship. However, the time for payment may be implied to be within ‘reasonable time’. In this case, it is safe to say that there was acceptance.

Consideration

Consideration must exist to validate a contract on both sides. Consideration is arrived at following the mutual bargain between both parties and may be substituted by a detrimental reliance, such as the promise to pay or a reasonable reliance to implement the contract. In the instant case, there was sufficient consideration that was mutually arrived at. However, there was no conduct of performance, such as an initial payment. However, what is not in doubt is that Mike has agreed to sell to Bob, while Bob has agreed to buy from Mike at a consideration they have mutually arrived at. This implies that the consideration aspect has been met.

Lawful Object

The contracting parties are doing so in their capacities as car dealers, thus it is a business that is legal and lawful. The mode of contracting, for instance, the offer, the acceptance, and consideration, is within the specifics of the law. Consequently, the lawful object has been met. It is also important to note that there was no counteroffer by requesting the check to be split in two.

References

Martin, J. S. (2012). Sales. Business Lawyer, 67(4), 1227-1243.

Uniform Law Commission. (2012) UCC Article 2, Sales and Article 2A, Leases. Web.

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