Business law

Document Type:Essay

Subject Area:Business

Document 1

The first rule that makes a contract legal is a verbal agreement made by both parties. It is within a verbal agreement where the facts of the contract are drafted to show all that was agreed upon (Garvin 295). For our case, it is through the verbal agreement there was an agreement about the blue four-door sedan. The other important rule that makes a contract to be legal is the idea of oral agreement. In this case, Jim and Laura established an oral agreement in collaboration with Stan in order for them to able to hold the vehicle by giving out a deposit of $100. He is supposed to ensure that all the standards of legal contract and ethical pallbearer are upheld as it is clear that for both Jim and Laura are they have no information about the norms (Kawashima 1).

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Stan established a verbal guarantee that for any case, the $100 will be refundable, on the same case, Jim and Laura had no receipt as evidence to use will proclaiming the refund. When they two decided not to buy a sedan, they communicated to Stan and made it sure to him that they were not going to purchase the blue four Sedan, therefore, Stan will have to refund their $100 deposit. This verbal communication made both parties recognize that they had no contract agreement on the automobile purchase (Mueller 833). Considering that they both had a deal that could have rested to Stan selling the sedan, Jim and Laura have the authority and legal power to cancel the deal without no form of cost be applicable for both parties.

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