What is a Contract?
An agreement that includes a promise or set of promises that the law enforces or protects.
1. An offer
2. Acceptance
3. Something of value is
exchanged by each party
Contracts are only enforceable against parties who have the legal capacity to enter into a contract.
Other factors that affect the validity of a contract
The UCC and Statute of Frauds state that contracts involving the sale of goods for a price of $500 or more must be in writing.
Legal Capacity
the party against whom the contract is to be enforced must be:
U.S. citizens
Of legal age under the laws of the particular jurisdiction
Of sound mind
Not under the influence of drugs
UCC
Uniform Commercial Code
Laws drafted by members of the National Conference of Commissioners to encourage uniformity among state laws.
Always rely on the law adopted by the state in which you work.
For more information on compliance in the F&I office, contact EFG at 800-527-1984.
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