Case Study Two: Sam Stevens: Legal Contract

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Case Study Two: Sam Stevens In the case of Sam Stevens, we need to investigate if there was enough evidence to conclude if a legal verbal contract was sat into place. There are elements of the contract that must be met before any contact is valid. According to Chapter 13 of Dynamic Business Law, the four elements of a contract are agreement, the consideration, contractual capacity and a legal object. The first two elements are meaning that there was a mutual agreement made by both parties and where all propositions are considered by both the offeror and the offeree. The first is agreement, Mr. Stevens (the offeror) did offer to ship 1,000 units of the Barking Machine to the store manager(the offeree). Therefore, this does qualify as a contract under the…show more content…
Next, is a consideration. The store manager agreed to accept the product, but there was no mention of what Mr. Stevens was going to receive in return. There was also no mention of when and where it was to be shipped. Therefore, this would keep this from being a legal contract if this was not stated when the contract was formed. Contractual capacity is a slight bit different and means that both parties must be within the legal age limit, sound mind and legally able make the binding contract. As far as we know, they are both in sound mind and able to commit to this agreement. Therefore, this would be legal if all other elements had been met. Finally, the element of a legal object would mean that the contract would not break any moral or legal laws. Since the manager wanted to exclusively sale this product as long as Mr. Stevens has no other contract this would be considered moral and would again be a binding element. Furthermore, if the consideration element had been established and the store manager and Sam had come to a compensation agreement, this would, in fact, be a legal contract. Although, if they were not in sound mind and of legal age then this would
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