Illinois Leasing Agent Practice Exam

What is required for a legally binding lease agreement?

1. It must be in writing

2. It must be witnessed by a notary

3. There must be an offer and acceptance

4. It must include a security deposit

The correct answer is: There must be an offer and acceptance

A legally binding lease agreement requires an offer and acceptance, which emphasizes the mutual consent of both parties involved. This fundamental element establishes that one party proposes terms for renting a property, and the other party agrees to those terms, creating a consensus that is essential for any contract, including leases. While having a written document can provide clarity and serve as important evidence of the agreement, not every lease must be written to be enforceable—although writing is often required when the lease term extends beyond one year. Witnesses or notarization can enhance the legitimacy of a document, but they are not universally required for a lease to be binding. Additionally, including a security deposit is common practice, but it is not a mandatory element for the validity of a lease agreement. Therefore, the presence of an offer and acceptance directly establishes a legally binding agreement, as it reflects the agreement of the parties to enter into a contractual relationship.