Based on the case that follows, identify the four essential elements of a contra

Question

Based on the case that follows, identify the four essential elements of a contract, describe how each element has or has not been met by the facts presented in the case, and determines whether a contract exists.

Charley offered to pay Sammy $10,000 to burn down Charley's restaurant, The Horse Barn, so that he (Charley) could collect on a fire insurance policy he had acquired when he first opened the restaurant. Since opening the restaurant, Charley had been losing money and he now needed the funds to pay outstanding obligations for which he did not have the cash. Since Sammy needed money to pay for a new car, he burned down The Horse Barn as requested. Sammy then went to Charley's house to collect his money.

Explanation / Answer

The four essential elements of contract are-

1. Offer- An offer is a pledge by one party to enter into a contract based on set terms. There seems to be no issues with that.

2. Acceptance- Acceptance is the unequivocal agreement to terms of the offer. There seems to be no issues with that.

3. Consideration- Consideration is the value decided in the terms of agreement for executing contract. There seems to be no issues with that as well.

4. The intention to create legal relation- Legalitywhich means the contractmust not be against the law. Here the problem lies as the contract cannot be for something which is illegal. Buring restaurant for claiming insurance is unlawful activity.

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