Business Law Assinment - Essay Example

Additionally, being of the age of 17 years he did not have the legal capability to enter into a contract as he was a minor. Therefore, given the circumstances of the case the contract between John and the car dealer was invalid from the onset because john did not have the capability to enter into a contract. Secondly, the car that John bought was not a necessity, but a luxury as his friends had cars according to what he believed (Mann & Barry 34). Therefore, the outcome of the case would be that although John did not have the capacity to enter into the contract the car dealer relied on his word that he would make the repayments and for the reason he should pay the $500 down payment because he used the car.

In the case of the car dealer, the only more he would get is the down payment as promised by the John. However, the other three installments cannot be retrieved as the contract was invalid as he enter into a contract with a minor. Entering into a contract with person who lack capacity to contract makes the contract invalid. An illegal agreement under contract law is a contract that the courts will not enforce because the reason for the agreement or the contract will not achieve a legal end. Additionally, the illegal end must also result from the performance of the contract itself.

Therefore, a contract of installing a fuel tank in the lorry for putting illegal drugs not meet the legal standards of enforceability. In the case of Bovard V. American Horse Enterprises (1988) the court of Appeal in California refused to enforce a contract for the payment of promissory notes that were used to purchase a company that manufactured drug paraphernalia. Therefore, any contract that will have an illegal end is not enforceable under contract law. In the case of Jack and the mechanic, the contract was illegal because when Jack entered into the mechanic shop he told him the true intention of the extra gas tank.

For that reason, he did bot mislead him into believing