Contracts Law
Case Study- Contracts Law
There were two offers. There is an offer is a meeting of the minds can be reached by the recipient of the offer accepting the terms of the offer. The first offer was by Galaxy Computer store and consisted of Galaxy placing an ad in the paper for Pentium 4 computers for $3,000. The second offer was by Gabrielle and consisted of her offering a her old computer as a trade-in, $1,000 down, and monthly payments in lieu of $3,000 in exchange for the computer. Because Gabrielle made a counter-offer to Galaxy's offer, there were two offers.
There was acceptance of the contract. Acceptance means that the party to whom the offer was directed consents to its terms and agrees to the formation of the contract. There was no acceptance by Gabrielle of Galaxy's offer of a computer in exchange for $3,000. Instead, Gabrielle made a counter-offer to Galaxy. Galaxy accepted the counter-offer by signing a contract with Gabrielle, in which it was provided that Galaxy would tender the computer in exchange for $1,000, Gabrielle's old computer as a trade-in, and Gabrielle's promise to make monthly payments on the balance. Therefore, while Gabrielle did not accept Galaxy's offer, Galaxy accepted Gabrielle's offer.
The subject of the contract was the sale of a computer. Contracts for the sale of merchandise are legal. Assuming that the provision requiring Gabrielle to pay the balance of the purchase price over a two-year period did not violate any usury laws, the subject of the contract was legal. Furthermore, while the Statute of Frauds in the...
Therefore, the subject of the contract was legal.
There was consideration. Consideration is the exchange of benefits by the parties. The consideration tendered by Gabrielle was her promise to give Galaxy her old computer, $1,000, and two years of $40 monthly payments. The consideration tendered by Galaxy was its promise to give Gabrielle a Pentium 4 computer. Therefore, there was consideration by both parties.
The terms of the contract provided that, one month after the contract was signed Galaxy was to deliver the Pentium 4 computer to Gabrielle. At that time, Gabrielle was to tender her old computer and $1,000 to Galaxy. Then Gabrielle was to make $40 monthly payments for a period of two years.
There was a meeting of the minds regarding price. Although Gabrielle did not accept Galaxy's offer of a Pentium 4 computer for $3,000, Galaxy accepted Gabrielle's counteroffer. Because the parties agreed that Gabrielle would receive a Pentium 4 in exchange for her offered consideration, there was a meeting of the minds regarding price.
It was necessary for the parties' contract to be in writing. The UCC has adopted the Statute of Frauds and requires contracts for the sale of goods worth over $500 to be in writing. Furthermore, the UCC and the Statute of Frauds require that contracts that cannot be completed within one year to be in writing. The contract involved the sale of a $3,000 computer and required…
