Business Law Assignment

All four of these elements must be present to have a contract (Agreement, Consideration, Capacity, and Legality). Determine whether a contract exists. If all of the essential elements are present, then a contract exists. If one or more of these elements is missing, then a contract has not been formed.

***Write a 150-word paper that identifies the four essential elements of a contract, describes 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.