What characterizes a valid contract?

A valid contract is characterized by an enforceable agreement by law. For a contract to be legally binding, it must meet certain criteria including mutual consent, a legitimate object, lawful consideration, and the capacity of the parties involved. When these elements are present, the contract can be enforced in a court of law, thereby providing legal protection for all involved parties.

Verbal agreements can sometimes be enforceable, but they often lack the clarity and proof that written contracts provide, making them less reliable. Contracts that lack consideration—meaning there is no exchange of value between the parties—cannot be enforced as valid contracts. Additionally, contracts executed under duress are not valid as they compromise the free will of one party, thereby invalidating the agreement. Thus, the essential characteristic of a valid contract is that it must be enforceable by law, which encompasses all necessary legal requirements.