Business Standards Transcript
Speaker: Narrator, Robert “Bob” Johnson, Michael Smith
Narrator: Bob is a local used-car dealer and he’s feeling pretty good at the moment. He’s about to close a great deal with another used-car dealer, Mike. Mike has agreed to pay Bob more than he expected for a like-new car on his lot. The car’s on consignment from its owner, Al. Bob and Mike had talked about the deal over the phone and e-mail. During Mike’s visit to Bob’s dealership they settled on a final figure of $25,000.00. Once Bob received the payment, he would then write a check to Al for $22,000.00 and keep $3,000 as a consignment fee. All he had to do was say yes.
Mike: Sounds great. I can't believe you're letting this go for so little. I mean for $25,000 (pause) I feel like I'm stealing.
Bob: Yeah, right?
Mike: Take care.
Contract Creation
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.
Offer
Met Not Met
Acceptance
Met Not Met
Consideration
Met Not Met
A Lawful Object
Met Not Met
Do the parties have a contract at this point?
Yes No
Why or why not?
Does U.C.C Article 2 (Sales), Section 201 apply in this situation?
Yes No
Why or why not?
Consider the following two choices. What choice would you make if you were Bob?
Ask Mike to sign a written contract.
Move forward, because each side mutually understands the terms.
Are you satisfied with how the contract is written?
Yes No
In consideration of the mutual promises and other valuable consideration exchanged by the Parties as set forth herein, Buyer agrees to buy, and Seller agrees to sell the property hereinafter described; and the Parties, intending to be legally bound, hereby further agree as follows:
A. Description of Procured Vehicle
1. Make: Toyota
2. Model: Corolla / S Series (1.8L 4-cyl 4AT)
3....