Did Jim and Laura Buy a Car?Worth 200 pointsHINT: See Chapters 10-14 of the text to help understand some of the legal issues covered in thisassignment.Jim and Laura Buyer visit the local car dealership because they are interested in buying a newcar. The car they currently have is aging and is starting to have mechanical problems. Jim andLaura would share the new car, and use it to go back and forth to work and school. Before goingto the dealership, Jim and Laura decide that they can only afford $400.00 a month in carpayments.Once at the car dealership, Jim and Laura meet Stan Salesman. Stan shows them several vehiclesand Jim and Laura test-drive several of the cars. Jim and Laura particularly like the blue 4-doorsedan. Therefore, they agree to give Stan Salesman a $100.00 deposit to hold the car for a day.Stan Salesman does not give them the receipt but guarantees that the $100.00 is refundable. Nodocuments were signed.The next day, Stan Salesman calls Jim and Laura to ask them when they would like to takedelivery of the car. Jim and Laura, on the way home from the dealership, decided that they werenot going to buy the car because they did not want to spend that money each month. Therefore,Jim and Laura tell Stan salesman that they have decided not to buy the car and request their$100.00 deposit back.Stan insists that the $100.00 was a deposit on the car and was meant to be part of the contract tobuy the car. Stan is very persistent and insistent that Jim and Laura have contracted to buy thecar; therefore, the $100.00 will be applied to the purchase price of the car. Jim and Laura areshocked and angry as not only do they not want to spend the money, but now feel as though theyare being duped by Stan Salesman.Jim and Laura have an appointment to see a lawyer in a few days, but know you are a studenttaking a business law class and come to you for advice. They are very frazzled, andunderstandably upset that they may have just purchased a car. Since you have been takingbusiness law, you have read and understand the elements of a contract and the defenses to acontract. Therefore, although you are not a lawyer, you provide some basic advice from whatyou’ve learned in your business law class.In three to five (3-5) pages, advise Jim and Laura based on the above facts as presented, thematerial provided in the text, and material covered in the lecture. In your paper, be sure toaddress the following:1. Define the elements of a legal contract using examples from the scenario whereapplicable.2. Decide whether or not there was a contract for the purchase of the automobile. 3. Identify the facts from the scenario which support your decision on whether or not acontract exists for the purchase of the automobile.4. Use at least two (2) quality academic resources in this assignment. Note: Wikipedia andother Websites do not qualify as quality academic resources.5. Format your assignment according to the following formatting requirements:o Typed, double spaced, using Times New Roman font (size 12), with one-inchmargins on all sides.o Include a cover page containing the title of the assignment, the student’s name,the professor’s name, the course title, and the date. The cover page is not includedin the required page length.o Include a reference page. Citations and references must follow APA format. Thereference page is not included in the required page length.Grading for this assignment will be based on answer quality, logic / organization of the paper,and language and writing skills, using the following rubric.