Did Steve and Janet Buy a Car?

Steve and Janet Jones visit the local car dealership because they are interested in buying a new car. The car they currently have is aging and is starting to have mechanical problems. Steve and Janet would share the new car, and use it to go back and forth to work and school. Before going to the dealership, Steve and Janetdecide that they can only afford $400.00 a month in car payments. Once at the car dealership, Steve and Janetmeet Jeremy Franklin. Jeremyshows them several vehicles and Steve and Janettest-drive several of the cars. Steve and Janetparticularly like the blue 4-door sedan. Therefore, they agree to give Jeremya $100.00 deposit to hold the car for a day. Jeremy does not give them the receipt but guarantees that the $100.00 is refundable. No documents were signed. The next day, Jeremycalls Steve and Janetto ask them when they would like to take delivery of the car. Steve and Janet, on the way home from the dealership, decided that they were not going to buy the car because they did not want to spend that money each month. Therefore, Steve and Janettell Jeremythat they have decided not to buy the car and request their $100.00 deposit back. Jeremyinsists that the $100.00 was a deposit on the car and was meant to be part of the contract to buy the car. Jeremyis very persistent and insistent that Steve and Janethave contracted to buy the car; therefore, the $100.00 will be applied to the purchase price of the car. Steve and Janetare shocked and angry as not only do they not want to spend the money, but now feel as though they are being duped by JeremyFranklin. Steve and Janethave an appointment to see a lawyer in a few days, but know you are a student taking a business law class and come to you for advice. They are very frazzled, and understandably upset that they may have just purchased a car. Since you have been taking business law, you have read and understand the elements of a contract and the defenses to a contract. Therefore, although you are not a lawyer, you provide some basic advice from what you've learned in your business law class.

1. Define the elements of a legal contract using examples from the scenario where applicable.
2. Decide whether or not there was a contract for the purchase of the automobile.
3. Identify the facts from the scenario which support your decision on whether or not a contract exists for the purchase of the automobile.
4. Use at least two (2) quality academic resources in this assignment. Note: Wikipedia and other websites do not qualify as quality academic resources.

• define the elements of a legal contract
• use examples from the scenario to illustrate these elements
• provide a judgment on the existence of a contract in this scenario
• use specific examples from the scenario to defend your position
• reference at least two academic sources in your essay
• explain how each source relates to and supports your judgment on the case