What must a valid contract meet in order to be enforceable?

A valid contract must meet several specific criteria to be enforceable, and the correct answer encompasses all of these essential aspects.

First, mutual agreement is crucial; both parties involved must come to a consensus on the terms of the contract, often referred to as "meeting of the minds." This ensures that both parties have a clear understanding of their obligations and rights under the contract.

Second, the parties involved must be competent, meaning they must have the legal capacity to enter into a contract. This typically excludes minors, individuals under the influence of drugs or alcohol, or those deemed mentally incapacitated.

Third, consideration is an essential element, which refers to something of value being exchanged between the parties. This could be money, services, or goods. The requirement for consideration is fundamental because it denotes that both parties are gaining something from the contract, making it binding.

Lastly, a lawful purpose is necessary. The contract cannot facilitate illegal activities; instead, it must adhere to legal standards and be established for a legitimate reason.

In contrast, other options contain elements that are either unnecessary for enforceability or misunderstand the fundamental aspects of contract law. For example, while documentation can be important, especially for certain types of contracts, not all enforceable contracts need to be written