Question

Arnold owned a Chevrolet dealership and wanted to expand by obtaining a Buick outlet. He spoke with Patricia Mendez and other Buick executives on several occasions. He now claims that those discussions resulted in an oral contract that requires Buick to grant him a franchise, but the company disagrees. His strongest evidence of a contract is the fact that Mendez gave him forms on which to order Buicks. Mendez answered that it was her standard practice to give such forms to prospective dealers, so that if the franchise were approved, car orders could be processed quickly. Is there a contract? Explain why or why not.

Answer 1

In the given scenario, there is NO LEGAL CONTRACT.

Mere discussions with the other party doesn't amount to the acceptance of the contract.

Order forms which were given to Arnold are given to every prospective dealers of Buick and it cannot be held as a proof for the existence of contract.

In order to a contract to exist, there should be an offer from Arnold to Buick and Buick should accept his offer of franchiseeship.

Hence there is no contract.

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Hope this is helpful!!