Sample Critical Thinking Paper on Used Car Sale Contract

Used Car Sale Contract

This was a contract made between John and Peter, for the sale of John’s Toyota Premio model 2007. The vehicle was a Premio 1800cc with good condition, gunmetal color only 25000km done genuinely. The VIN number was four and the odometer read < 100,000 as of 24 August 2008. The date of sale was 12 December 2008. Peter agreed to fully pay John a total of $ 15000 by banker’s cheque. The car was sold as it was and John did not make any warranties about the condition of the car. John gave peter the title of the vehicle and other required documents for instance inspection, and a current smog test report.

This example can be analyzed using the five fundamental elements of a suitable contract as explained below:

An Offer

This is the first element of a contract. This is necessary for a contract because if there is no offer then there is no contract (, 2014, p. 1). The contact was successful because there were two parties (John and Peter). These parties are the ones that made the agreement to be suitable.


A contract can only be said to be successful if the involved parties agree with each other. In the above example, Peter and John accepted to make an agreement for the sale of a used car. Peter accepted the offer through a verbal agreement by accepting to pay $ 15000 for the Toyota Premio car.


It is a significant element in any contract. It simply implies the other individual will be required to incur some expenses in order to get whatever he wants. For instance, John decided to sell his car, and peter accepted to take the car by paying the agreed amount of money. By accepting the contract, Peter was ready to pay the $15000.

Intention to Create Legal Relations

Any valid contract should have the intention to create legal relations (, 2014, p. 1). Based on the above example, Peter and John did not create legal creation, for instance, they did not have any legal binding on what would take place if one party passed on before the deal was over (, 2014, p. 1).


This term state that there should be a clear indication of the terms and conditions that have been made by the parties in the contract. For instance, John clearly stated the final date when he expected the payments to be made. Peter signed a contract with john that he would buy the car on 12 December 2008. This clearly indicates that John gave him an allowance of up to this date.


It refers to the ability of the individuals involved in a contract to do so. Individuals above 18 years are eligible for entering a contract. From the above examples, John and Peter had the capacity to sign a contract. The contract was successful because it adhered to the essential elements of a suitable agreement. Additionally, John’s intention was to sell his car, and eventually, he got a buyer for the car (, 2014, p. 1). There was no breach of contract in the above-mentioned example.

In conclusion, it is significant to have the major elements in a contract. This is because they are the elements that make a deal to be suitable. Individuals should be cautious in making an agreement to ensure those involved agree with the conditions indicated in it.

References (2014). Main elements constituting a valid contract | Law Teacher. Retrieved on 11 April 2014 from: (2014). Contract | Wex Legal Dictionary / Encyclopedia | LII / Legal Information Institute. Retrieved on 11 April 2014 from: <>