Acquisition Law and Oral Contracts
Abstract
Many individuals do not understand the full significance of the terms outlined in a contract until they find themselves at the receiving end of litigation. In addition, they do not recognize that a contract can be established with as little as a verbal agreement between parties which can, as with a written contract, become the basis to award damages in the event that one or more members default on the agreement. When individuals make purchases they form contracts with the entity whose business they patronize. Formation of a contract for sale need only entail an offer and acceptance between parties and is legally binding when agreement and consideration are ascertained. The purpose of this paper is to address legal considerations one should take into account when making oral purchases in the marketplace.
Introduction
Bob is on his way home from work when he spots his neighbor Sam selling old items at his garage sale. Bob walks over and sees a toolset for sale for $50. Bob wants to buy the toolset but doesn’t have the money to give Sam for it until next Thursday. He asks Sam if he would be willing to hold on to the toolset for him until next Thursday so he can buy it and Sam agrees to sell it to him. By offering to purchase a good from Sam and having his offer accepted, Bob has entered into an oral contract with Sam. Such transactions occur regularly between parties but individuals often have a carefree attitude toward oral contracts because there is nothing written and signed to seal an agreement. The assumption is since an agreement isn’t documented it isn’t enforceable but this is not always the case. The law recognizes oral contracts just as they do with written contracts. My research delves into the attributes that necessitates a legally binding contract and the consequences people can face should a participating member default on a promise made in an oral agreement or, in this case, an oral purchase.
Oral Purchase = Oral Contract
“A
Many individuals do not understand the full significance of the terms outlined in a contract until they find themselves at the receiving end of litigation. In addition, they do not recognize that a contract can be established with as little as a verbal agreement between parties which can, as with a written contract, become the basis to award damages in the event that one or more members default on the agreement. When individuals make purchases they form contracts with the entity whose business they patronize. Formation of a contract for sale need only entail an offer and acceptance between parties and is legally binding when agreement and consideration are ascertained. The purpose of this paper is to address legal considerations one should take into account when making oral purchases in the marketplace.
Introduction
Bob is on his way home from work when he spots his neighbor Sam selling old items at his garage sale. Bob walks over and sees a toolset for sale for $50. Bob wants to buy the toolset but doesn’t have the money to give Sam for it until next Thursday. He asks Sam if he would be willing to hold on to the toolset for him until next Thursday so he can buy it and Sam agrees to sell it to him. By offering to purchase a good from Sam and having his offer accepted, Bob has entered into an oral contract with Sam. Such transactions occur regularly between parties but individuals often have a carefree attitude toward oral contracts because there is nothing written and signed to seal an agreement. The assumption is since an agreement isn’t documented it isn’t enforceable but this is not always the case. The law recognizes oral contracts just as they do with written contracts. My research delves into the attributes that necessitates a legally binding contract and the consequences people can face should a participating member default on a promise made in an oral agreement or, in this case, an oral purchase.
Oral Purchase = Oral Contract
“A
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