What are the requirements for a contract and agreement to be made?

For a contract and agreement to be valid and enforceable, it is essential to meet several key requirements. These include:

• Offer and Acceptance: There must be a clear proposal (offer) by one party and a clear acceptance of that offer by another party. This ensures that both parties are agreeing to the same terms, which is the foundation of any contract.

• Valid Consideration: Contracts require consideration, which is something of value that is exchanged between the parties. This could be money, services, or goods, and it distinguishes a contract from a mere promise or gift.

• Competent Parties: All parties involved in the contract must have the legal capacity to enter into an agreement. This typically means they must be of legal age, of sound mind, and not under undue influence or duress.

• Legal Purposes: The contract must be for a lawful purpose. Any agreements that involve illegal activities are not enforceable by law.

• Reality of Consent: There must be a genuine agreement between the parties, meaning that the consent to enter the contract is real and not obtained through fraud, misrepresentation, or coercion.

The selection of the correct answer reflects the comprehensive criteria needed to form a valid