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Gary's hobby was collecting antique guns. His collection consisted of many rare guns. One day, while visiting with Cody, a fellow collector, Cody said, "When I retire, I am going to sell my collection to you." Gary said he looked forward to the day when he could buy the collection. Gary then spent a year and a great deal of money remodeling a room in his house to display the collection. When Gary told Cody that he was remodeling the room, Cody said nothing. Cody also knew that Gary had borrowed money to remodel the room. When Cody retired, he sold his collection to someone else. Gary sued Cody claiming breach of contract.

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We need to examine this situation and weigh the elements against the elements that made a contract valid. In this case, we have something of value (the collection), and a promise, as Cody told Gary he was going to sell him the collection as soon as he retired. A valid contract has several elements, which are:

1. All parities must be competent.
2. There must be an offer.
3. There must be an exchange of consideration.
4. All parties have to agree to the terms of the contract, as-is, or the contract must be modified until parties agree.
5. The contract must not include illegal elements. It cannot be a contract for illegal drug sales, for example.
6. The contract must meet legal requirements, which can include signatures, the contract must be dated, and other appropriate elements must be included.

Now let's take a look at our list ...

Solution Summary

This solution explains if Gary and Cody had a legal contract. Each element is discussed and properly referenced.

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