Now with funds in hand, the members lease a firehouse for their business and seek out reliable transportation. They visit a used car lot. The salesman offers them a vehicle he believes will be perfectly suited for their type of pest control- a black, 1967 four door Chevy Impala. He believes the car’s spacious trunk will be perfect for storing their pest control supplies discretely and the car’s V8 will have the power they need to move quickly from job to job.

However, Egon protests that the car just won’t have enough room for their bulky equipment as well as storage for any captured pests. He instead favors a 1959 Cadillac Hearse. The hearse is priced at $9,000. Ray offers $7,500. After talking for hours to his boss, the salesman returns and offers responds they will sell the car for $7,500 if the team allows the dealership to perform a complete inspection, tune-up of the motor, application of a rust-resistant undercoating and a “5,000 mile bumper to bumper covers everything we promise it will always work warranty” for the low price of an additional $2,000.00. Pleased with his negotiation skills, Ray says yes. Please analyze if a contract exists or not and at what point, if any, an agreement was reached.

Assume the dealership and Ray signed a document that reads as follows:

1959 Hearse for $7,500 sold to Ray

inspection, tune-up and undercoating $2,000

Please analyze if a contract exists now. Are there any issues?

Answer rating: 100% (QA)

A contract is an agreement which imposes rights and obligations on the parties in contract which can ... View the full answer