Illinois Leasing Agent Practice Exam

Which of the following is not an essential element for a valid contract?

1. Offer and acceptance

2. Agreement must be in writing

3. Consideration

4. Capacity to contract

The correct answer is: Agreement must be in writing

A valid contract must include several essential elements to be enforceable, and one of those elements is that there must be an offer and acceptance, which reflects the mutual agreement between the parties involved. Consideration, which refers to something of value exchanged between the parties, is also a critical component that legitimizes the contract. Additionally, the parties involved must have the capacity to contract, meaning they must have the legal ability to enter into an agreement. While having an agreement in writing can offer numerous benefits, such as clarity and serving as proof of the agreement, it is not always a requirement for a contract to be valid. Many contracts can be enforceable even if they are made verbally, as long as they encompass the essential elements of offer and acceptance, consideration, and capacity. Thus, a written agreement is beneficial but not universally necessary for a contract's validity.