NALA Certified Paralegal Practice Exam

A valid contract requires all of the following

- Agreement: Both parties must come to a mutual understanding of the terms and conditions of the contract.

- Consideration: Each party must give something of value in exchange for the other party's promise.

- Capacity: Both parties must have the legal ability to enter into a contract.

- Legality: The contract must be for a lawful purpose and not against public policy.

Option A is incorrect because it includes fraud and unconscionability, which are not necessary for a contract to be valid. Fraud and unconscionability may be grounds for voiding a contract, but they do not affect the validity of the contract itself.

Option B is incorrect because it includes unconscionability as a requirement, which is not necessary for a valid contract.

Option C is incorrect because it does not include capacity as a requirement and includes impossibility, which is