Question

Miguel owns a small hardware store in Fort Mill. His friend, John, stops by three times a week to buy various supplies that he needs for a house he is building in town. One sunny afternoon, John drops by Miguel's store and picks up two screwdrivers. John walks by the main desk and waves the screwdrivers at Miguel (in a non-threatening fashion) before walking out the door without paying. There is no talking between the two. Miguel also wants to purchase the land behind his building for extra space. He enters into a verbal contract with Erica, who owns the lot, in the amount of $50,000. He then makes some preparations for the new space like purchasing some warehouse equipment. Three weeks later, Miguel visits Erica to get the keys. Erica tells him that they never had agreement, and refuses to sell. Miguel has an assistant, Debra. She is an excellent worker - always on time, diligent in her duties, friendly to customers. Miguel tells her that, due to her great work over the past year, she can have the company car: a 2022 Tesla Model S. In anticipation of her new acquisition, Debra cleans out her house's cluttered garage. She also takes the car in for maintenance at a repair shop, something she does as part of her regular job. One day later, after reviewing his shop's finances, Miguel realizes that he can't give her the car after all and tells her so. Debra is upset by this, quits, and sues. Lastly, Miguel has decided to replace the old sign outside of his hardware store. When the new sign arrives, the design is different than what he wanted (although the store name is spelled correctly).

1. Does a contract exist between Miguel and John? Explain why or why not.

Answer 1

No contract exists between Miguel and John since there is no evidence of an agreement or consideration, which are essential elements for a contract to be legally enforceable.

Step-by-step explanation:

The question asks whether a contract exists between Miguel and John in the described scenario. A contract requires an agreement between parties that is intended to be enforceable by law. This includes an offer, acceptance, consideration, and mutual intent to be bound. In the scenario with Miguel and John, no conversation or exchange of terms is described. John picking up screwdrivers and waving at Miguel does not in itself constitute a binding contract as there is no evidence of mutual agreement or consideration involved. Therefore, based on the information provided, it does not appear that a legally enforceable contract exists between Miguel and John.