BUS 206 Milestone Two Case Study 2021
, BUS 206 Milestone Two Case Study
A. Various elements must be present to prove that a valid contract exists between Sam and the
chain store.
The four elements to a contract are the agreement, the consideration, contractual capacity,
and a legal object.
The first element of agreement would be deemed to exist if there was an offer and an
acceptance. Sam made a verbal/communicated offer to the chain store, telling the store
m
er as
manager he would ship them 1000 units of his invention.
co
eH w
The second element of consideration would be deemed to exist if Sam and the chain store
o.
talked about what Sam would get in return for the 1000 units. Consideration is “what a
rs e
ou urc
person will receive in return for performing a contract obligation.” (Kubasek, N. (2014).
They did not in fact speak of any type of payment or anything in return for sending the 1000
o
aC s
units.
vi y re
The third element of contractual capacity would be deemed to exist if Sam and the chain
store each had the legal ability to enter into a binding agreement. The case does not speak of
ed d
Sam’s age or any mental illness or being an intoxicated persons. So we assume he has the
ar stu
legal ability and capacity to enter into a binding agreement.
The fourth element of legal object means that to be enforceable, the contract cannot be either
is
illegal or against public policy. Sam and the chain’s stores subject matter is about selling his
Th
invention in their stores which can be performed legally and is not against public policy.
If the elements of a contract did exist between these parties, there could still be some possible
sh
reasons why a contract might not be valid based on facts not present in the scenario. For
example, if Sam was a minor at the time he made the agreement with the chain store, the
contract would not be valid because contractual capacity. Contractual capacity in a contract
This study source was downloaded by 100000826342158 from CourseHero.com on 10-19-2021 16:41:20 GMT -05:00
https://www.coursehero.com/file/14495299/BUS-206-Milestone-Two/
, BUS 206 Milestone Two Case Study
A. Various elements must be present to prove that a valid contract exists between Sam and the
chain store.
The four elements to a contract are the agreement, the consideration, contractual capacity,
and a legal object.
The first element of agreement would be deemed to exist if there was an offer and an
acceptance. Sam made a verbal/communicated offer to the chain store, telling the store
m
er as
manager he would ship them 1000 units of his invention.
co
eH w
The second element of consideration would be deemed to exist if Sam and the chain store
o.
talked about what Sam would get in return for the 1000 units. Consideration is “what a
rs e
ou urc
person will receive in return for performing a contract obligation.” (Kubasek, N. (2014).
They did not in fact speak of any type of payment or anything in return for sending the 1000
o
aC s
units.
vi y re
The third element of contractual capacity would be deemed to exist if Sam and the chain
store each had the legal ability to enter into a binding agreement. The case does not speak of
ed d
Sam’s age or any mental illness or being an intoxicated persons. So we assume he has the
ar stu
legal ability and capacity to enter into a binding agreement.
The fourth element of legal object means that to be enforceable, the contract cannot be either
is
illegal or against public policy. Sam and the chain’s stores subject matter is about selling his
Th
invention in their stores which can be performed legally and is not against public policy.
If the elements of a contract did exist between these parties, there could still be some possible
sh
reasons why a contract might not be valid based on facts not present in the scenario. For
example, if Sam was a minor at the time he made the agreement with the chain store, the
contract would not be valid because contractual capacity. Contractual capacity in a contract
This study source was downloaded by 100000826342158 from CourseHero.com on 10-19-2021 16:41:20 GMT -05:00
https://www.coursehero.com/file/14495299/BUS-206-Milestone-Two/
