What determines the validity of a contract?
What will be an ideal response?
Answer:
For a contract to be valid, the persons signing the contract must agree on the terms. In addition, for a contract to be valid and enforceable, the following principles must be met:
a. The contract must be based on a mutual agreement by the parties to do or not to do a specific thing or things.
b. The contract must be made by parties who are able and competent to enter into the contract and to enforce the terms of the contract. In some states, this may mean that minors may not enter into certain types of contracts.
c. The contract must include consideration to pay money, deliver services, or promise to do or refrain from doing some lawful act that has not yet occurred (i.e., a contract cannot be made to enforce an event that has already occurred).
d. The purpose of the contract must be lawful. Contracts for unlawful acts are unenforceable.
e. If the contract falls into a class of contracts required by law to be in a special form, the format of the contract must meet those laws or requirements.
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