75 Hour Broker Pre Licensing Practice Test

Question: 1 / 820

Which of the following is considered a vital component for forming a valid contract?

Offer and acceptance

The formation of a valid contract relies on several essential components, with offer and acceptance being foundational. For a contract to exist, one party must present a clear and definite offer, and the other party must accept that offer unambiguously. This mutual agreement signals the intention of both parties to enter into a binding agreement.

While mutual consent, written agreements, and legal capacity are also important elements within the broader context of contract validity, the most critical starting point is the exchange of an offer and an acceptance. Without this initial agreement, there cannot be a contract to enforce, regardless of the other conditions being met. Thus, understanding that both parties must agree on the terms establishes the basis upon which contracts are formed is crucial for anyone studying contract law and real estate principles.

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Mutual consent

Written agreement

Legal capacity

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