Question

Exercise

Answer each question, and explain the basis for your answer

A customer told the owner of a music store that she would buy a $145 guitar as soon as the music store received it from the wholesaler. When the guitar arrived a week later, the customer said that she had changed her mind and that the contract was invalid because it was not in writing. Did a valid contract exist without a written document according to the law in most states?

Response:

Michael Carr, 17 years old, agreed to purchase a $400 shotgun from a sporting goods store. Before making the purchase, he changed his mind. Can Michael avoid the contract?

Response:

A prospective entrepreneur, in talking with a realtor and the owner of a business site, agreed to purchase the property for a specified sum. No contract was signed, however. During the night, this person had a change of heart and decided to look for another site. Was this person bound by the promise of the previous day?

Response:

Answer 1

1. In this case there is actually no valid contract because nothing was documented between the potential buyer and the store. A valid contract may exist without a written document in most of the states but in that case there should be proper evidence to prove that the oral contract was made and such contracts comes with their series of limitations and it is better not to rely on verbal promise because promise is generally not a contract and even in this case it cannot be proved that it was a contract because there was nothing that was written based on ten agreement.

2. In this case Michael has agreed to buy a firearm that is a shotgun because such an agreement will not be considered as valid because in USA the minimum age of possessing a fire arm is 21 therefore Michael can avoid the contract by stating the facts that he is a minor and he cannot possess a firearm by law.

3. In this case also the entrepreneur made a promise which had to formal or written document to support hence he is not bound and can avoid the agreement. The realtor also cannot prove the conversation or the promise because there was no document to support the claim.