What constitutes a valid contract?

Study for the Arizona Salesperson Test with flashcards and multiple-choice questions. Each question is paired with helpful hints and detailed explanations. Get ready to ace your exam!

A valid contract includes all essential elements necessary for it to be legally enforceable. The primary components of a valid contract are: mutual consent between the parties, a lawful object, consideration (something of value exchanged), and the legal capacity of the parties to enter into the agreement. When all of these elements are present, the contract is deemed valid, meaning it can be upheld and enforced in a court of law if necessary.

In contrast, a contract based solely on verbal agreements lacks the necessary formalities and can lead to disputes regarding the terms agreed upon. Additionally, if a contract is missing one or more essential elements, it cannot be considered valid, and invalidation in court indicates that a contract either failed to meet these requirements or has been deemed unenforceable for some reason. Therefore, the presence of all essential elements is what makes the contract valid and enforceable.

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