Which of the following represents the requirements of valid contract? a. Lawful Subject Matter b. Legally competent parties c. Valid consideration d. Free consent
- A(a) and (b) of the above
- B(a) and (c) of the above
- C(c) and (d) of the above
- D(a), (b), (c) and (d) of the aboveCorrect
Solution
Concept
Essential requirements of a valid contract
Formula
NONE
Step-by-step solution
1. According to contract law, an agreement becomes a legally binding contract only if essential conditions are satisfied. 2. These conditions include competent parties, free consent without coercion, lawful object or subject matter, and valid consideration. 3. Therefore, all four elements listed are mandatory requirements for a valid contract. Answer: D
Explanation
Under contract law, a valid contract must fulfill several essential legal conditions. These include having a lawful object, competent contracting parties, mutual free consent without coercion, and lawful consideration exchanged between parties. Since all four criteria are fundamental legal requirements, option D is the correct answer.
Why the other options are wrong
A) Valid consideration and free consent are also essential legal requirements for a valid contract. B) Legally competent parties and free consent are also mandatory elements of a valid contract. C) Lawful subject matter and legally competent parties are also necessary requirements for a valid contract.
Shortcut
Valid contract = Requires ALL legal essentials (lawful subject, competent parties, consideration, consent).
Common mistake
Choosing a partial combination of contract elements rather than recognizing that all listed legal requirements are mandatory.
Correct answer: D) (a), (b), (c) and (d) of the above