The Selling a Car Contract Draft

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Table of Contents

Purpose
Description
Product specifications
Consideration
Delivery of Acquired Car and Title Conveyance
Buyer’s Obligations
Six Elements of Contract
Analysis of Contracts Adherence to the Proposed Characteristics
Analysis of Both Parties

Purpose

This sales agreement between Mark (Buyer), 125 Brown Street, Dubai, and Christian (Seller), 121 Bakers’ Street, London, is for the purchase of Christian’s black Lamborghini 350 GT.

Description

Christian offers to sell his car for AED 1 million and Mark accepts this offer to buy the car at this price after a week of deliberations.

Product specifications

Quantity: 1;
Origin: Italy; Carrozzeria Touring;
Color: black;
Year: 1964;
Vehicle Identification Number: 350 GT.

Consideration

Purchase price: the total price by the Buyer (Mark) to the Seller (Christian) for the acquired car is AED 1 million (1 000 000);
The payment should be provided by the Buyer to the Seller by check, or in cash, or through other methods that are acceptable to the Seller.

Delivery of Acquired Car and Title Conveyance

The Seller must deliver the acquired car and the Buyer should receive the car. The delivery shall be carried out after the date the contract is executed. The Buyer’s duty is to appear in person at the Seller’s premises during business days on the Delivery Date to acquire the car.
The Seller is obliged to render the title to the Buyer concerning the delivery terms.

Buyer’s Obligations

The Buyer states that, unless stipulated by the legislature, license, any insurance terms, or registration, the car shall be canceled before the delivery.

Six Elements of Contract

The basic elements of a sales agreement include offer and acceptance, consideration, intention to establish legal relations, legal capacity, illegal contracts, and consent. As per offer and acceptance, the parties concluding the agreement should agree on the terms. It implies that the offer proposed by the Seller should be accepted by the Buyer. An offer is a promise to sell the product under certain conditions. The person has the right to withdraw the offer unless the contract is concluded.

Consideration involves the negotiation for the price that should be paid for the offer by the other party. The price can refer to anything of value, but it should not be the money. The consideration should not involve illegal conditions that do not allow the parties to perform the obligations. It is important to note, however, that sealed documents do not need consideration because they involve a binding agreement.

The agreement should imply establishing legal relations. The main purpose of the contract is to enter a legally binding relationship that should be stipulated explicitly. Legal capacity involves the ability of individuals to enter a valid agreement. Therefore, people with mental disorders, younger individuals, corporations, or legal entities, bankrupts, and prisoners are not allowed to conclude legally binding relations.

Not all contracts can be enforced for several reasons. Illegal contracts by statute will be controlled in accordance with enforceability. Thus, the statute should be interpreted and read before the contract is considered void, regardless of the parties’ awareness of its illegality. In case one party carries out an action that infringes legislature, the other party is also involved in an illegal issue, even if either of the parties is unaware of the contract enforcement. Nevertheless, the parties have the right to recover the money for the possible damages.

Any agreement should involve proper awareness and free will of responsibilities that each part has. Therefore, the consent for entering a contract must be genuine and mutual. As soon as the offer is accepted, both parties should express explicit consent to conclude a contract. They should also realize they are bound by this agreement as soon as they conclude it. The ultimate outcomes of creating that consent allow the parties to engage in the terms and conditions of the contract. Proper consent, however, can be influenced by such matters as false statements, duress, mistake, and undue influence.

Analysis of Contracts Adherence to the Proposed Characteristics

With regard to the above-presented elements of a contract, the sales agreement draft under analysis has a number of pitfalls. To begin with, although the agreement contains considerations and terms of delivery, the legal provisions are not presented carefully. In this respect, both the Buyer and the Seller should have introduced warranties and legal consequences of possible infringements. Second, there is no specification concerning the terms of delivery and compensation for possible injuries. The Buyer, therefore, failed to specify whether the car was in good condition or not and, therefore, the Seller has the right to sell the car without inspection control. There is no agreement concerning the pre-payment conditions, as well as the fixed date of delivery because “one month after the contract” is not an accurate specification.

Analysis of Both Parties

It is worth noting that no controversies should arise concerning the form of signing a contract. So, the fact that the agreement was concluded and signed on a napkin is not significant because any agreement that is confirmed and legally bound is considered to be a contract. Therefore, it is possible to conclude an agreement on a napkin provided all elements of the contract are present. With regard to the case, some of the elements of the contract are missing. This is of particular concern to the delivery terms and warrantees that could guarantee that the Buyer will receive the car in the state that the previously saw. As a result, despite the fact that Mark saw a small dent in the car, he is not entitled to claim that Christian should fix it until the date of delivery because the contract does not contain these provisions. Besides, the contract has already been concluded and signed.

Christian has the right to sell the car in any condition unless otherwise specified in the agreement. At the same time, the Seller has infringed the terms of the agreement by offering a sale to other parties because he is legally bound to enter only this agreement. On the other hand, due to the fact that some elements of the contract are missing, the contract can be considered illegal and void and, therefore, the Seller is entitled to sell the car to anyone he wants under much more beneficial conditions.

From a legal perspective, the Seller has the right to sell the item because the contract is not valid. From a moral and ethical perspective, the Seller should be responsible for the terms and conditions stipulated in the contract because both parties could be unaware of the presence or absence of certain elements of a contract. Therefore, because both parties do not possess knowledge, the Buyer has the right to receive compensation on the contract cancellation. Moral reimbursement can also take place. Under these circumstances, the Buyer has more rights because his requirements for the product consideration are logical and well-grounded.

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