Question

What are the four elements required of every valid and enforceable contract?

A. competent parties; legal purpose; offer and acceptance; and consideration
B. competent parties; legal address; broker signatures; and cash
C. competent parties; legal address; dollar amount; and clear title
D. competent parties; legal purpose; negotiated price; and signatures

Answer 1

The four elements required of every valid and enforceable contract are competent parties; legal purpose; offer and acceptance; and consideration.

Step-by-step explanation:

The correct answer is A. competent parties; legal purpose; offer and acceptance; and consideration. In order for a contract to be valid and enforceable, it must have these four elements:

1. Competent parties: Both parties entering into the contract must have the legal capacity to do so, meaning they are of legal age, mentally sound, and not under the influence of drugs or alcohol.
2. Legal purpose: The contract must have a lawful objective and cannot involve illegal activities or go against public policy.
3. Offer and acceptance: There must be a clear and unconditional offer made by one party and an acceptance of that offer by the other party.
4. Consideration: There must be something of value exchanged between the parties, such as money, goods, or services. This is what binds the parties to their contractual obligations.