National Real Estate Exam (PSI)ContractsEasy
Which of the following is NOT one of the essential elements required for a contract to be legally valid?
- ANotarization of signatures
- BOffer and acceptance
- CConsideration
- DLegal capacity of the parties
Show answer & explanationAnswer & explanation
Correct answer: A. Notarization of signatures
A valid contract requires offer and acceptance, consideration, legal capacity, and a legal purpose (mutual assent). Notarization may be used for recording purposes but is not required to make a contract legally binding.
Why the other options are wrong
- B. This is a required element (mutual assent).
- C. This is a required element (something of value exchanged).
- D. This is a required element (parties must be legally competent).
Essential Elements of a Contract
The basic requirements that must be present for a contract to be legally enforceable: offer and acceptance, consideration, legal capacity, and legal purpose.
- Mutual assent = offer + acceptance
- Consideration must be something of value
- Parties must have legal capacity (age, mental competence)
- Purpose of the contract must be legal
Memory trick: OCLC: Offer, Consideration, Legal capacity, legal purpose - remember your local library card