Essential Components of a Binding Agreement Quiz

Written agreement is not always necessary for a valid contract; verbal agreements can also be binding.

Consideration is the exchange of value, such as money, goods, or services, between parties to a contract.

In most jurisdictions, individuals must be 18 years old or older to enter into a contract.

For a contract to be valid, consideration must be exchanged by both parties, not just one.

Conditional acceptance introduces new terms or changes existing terms, making it invalid in contract law.

A voidable contract is valid, but one party has the option to void it due to legal defects such as misrepresentation or undue influence.

An offer is a proposal or expression of willingness to enter into a contract on specified terms.

A bilateral contract involves both parties making promises to each other.

Capacity refers to the mental ability of parties to understand the terms of a contract and its implications.

A void contract is invalid from the start, whereas a voidable contract is initially valid but can be voided under certain conditions.

A mere agreement is not enforceable in a court of law because it lacks the necessary elements to form a contract.

For a contract to be valid, both parties must intend for it to be legally binding.

Consideration refers to what each party gives up or promises to give up in exchange for something from the other party.

Frustration occurs when unforeseen circumstances make it impossible for one party to fulfill their obligations under a contract.

Capacity in contract law refers to the mental ability of parties to understand the terms of a contract and its consequences.

An express contract is one where the terms are explicitly agreed upon by the parties, either orally or in writing.

Promissory estoppel prevents a party from reneging on a promise if the other party relied on that promise to their detriment.