Intro to Paralegal Studies Practice

For a contract to be valid, which of the following must be present?

1. Witnesses and notarization

2. Offer, acceptance, and consideration

3. Written agreement and public record

4. Formal execution and legal review

The correct answer is: Offer, acceptance, and consideration

For a contract to be valid, it is essential that it includes an offer, acceptance, and consideration. The offer is the initial proposal made by one party to another, outlining the terms under which they are willing to enter into an agreement. Acceptance is the unequivocal agreement by the other party to the terms of the offer. Consideration refers to something of value that is exchanged between the parties, which can be money, services, goods, or a promise to perform or refrain from a specific action. Without these three elements, a contract typically cannot be deemed enforceable by the courts. While other options may touch upon aspects that are relevant in certain contexts—like the necessity for written agreements in specific circumstances or legal reviews—these aspects are not universally required for all contracts to be valid. In fact, many contracts can be oral and still hold validity as long as the key components of offer, acceptance, and consideration are present. Thus, the presence of these three elements is fundamental to the legality and enforceability of a contract.