Contract Creation Simulation

SONIA SMITH completed the Contract Creation Simulation for LAW/531 with the following responses:
To enforce a contract, the following four requirements must be met. Determine if each requirement has or has not been met, and then explain your answer.

Question 1:
Offer: Yes
Response: The video stated that Bob and Mike discussed the sale of the like new car. The price was $25,000 and the two met to finalize the agreement. A contract involves two parties and they make an agreement that is enforceable. Reference: Cheeseman, H.R. (2013). Business law: Legal environment, online commerce, business ethics, and international issues (8th ed.). Upper Saddle
River, NJ: Prentice Hall.

Question 2:
Acceptance: Yes
Response: Both parties were…show more content…
Response: Yes there is a contract. There is a verbal agreement where both parties agreed to the sale of the car. There was an offer of a price of $25,000 and both had a consideration in the agreement. According to Cheeseman, "a contract is an agreement that is enforceable by a court of law or equity (Cheeeman, 169)". There are a minimum of two parties involved and an offer was made, thus making this a contract.

Question 6:
Does U.C.C Article 2 (Sales), Section 201 apply in this situation? Yes
Why or why not?
Response: According to U.C.C. Article 2 the contract is enforceable only when there is a signed contract when the sale of the goods is over $500. While Bob and Mike have a verbal agreement in existence, in order for this to fall under the U.C.C. Article, there would need to be a signed contract made between these two parties in order to be enforced. Section 201 states: "Except as otherwise provided in this section a contract for the sale of goods for the price of $500 or more is not enforceable by way of action or defense unless there is some writing sufficient to indicate that a contract for the sale has been made between the parties...." References:…show more content…
A counteroffer is when the original offer is rejected and a new offer is made by the parties.
Reference: Cheeseman, H.R. (2013). Business law: Legal environment, online commerce, business ethics, and international issues (8th ed.). Upper Saddle River, NJ: Prentice Hall.

Question 10:
Can Bob enforce the original terms? Yes
Why or why not?
Response: To enforce means to compel obedience. In this case there was not a counter offer made. The offerer asked for the payment to be made it two checks, instead of one to him. The price of the deal has not changed. It is still $25,000. If there was a contract signed between these two, then Bob could enforce that the original terms of the contract be kept. However, the acceptance of the offer without a signed contract allows for the method of payment to change. Had the price decided to be changed, then that would be a counter offer and therefore a new contract. While this does not become enforceable under U.C.C. Article 2, it is enforceable as a verbal contract in court. References: Cheeseman, H.R. (2013). Business law: Legal environment, online commerce, business ethics, and international issues (8th ed.). Upper Saddle River, NJ: Prentice