Discuss CIPS L4M8 Exam Topic 9 Question 71

What is needed for a contract to be binding?

AExplanation:
A contract is written or verbal agreement, made between two or more parties that is legally enforceable. For a contract to be legally binding it must include intention of parties entering into the contracts. All parties must have the capacity to contract or be contracted. They must be of a sound mind, there should be a promise (offer) for performance from the other party and an exchange (consideration) of one thing for another within an agreement for contract to be binding, and there must be an acceptance of the offeror's offer by the offeree.

Suggested Answer: A

Get Premium L4M8 Questions as Interactive Web-Based Practice Test or PDF Real Exam Format Detailed Explanations Instant Access Get Your Practice Test

20 comments · newest first

Ronny 2 months ago

I feel confident about this question!

Franchesca 2 months ago

Consideration is key too! Without it, no binding.

Glory 2 months ago

And there must be an offer and acceptance.

Rocco 3 months ago

Don't forget capacity to contract!

Candra 3 months ago

Yes, intention is crucial!

Maurine 3 months ago

A contract needs intention, right?

Launa 3 months ago

Don't forget, all parties must be of sound mind!

Darnell 3 months ago

Sounds right, but what about minors?

Amina 4 months ago

Wait, can a verbal contract really be binding?

Idella 4 months ago

Totally agree, those are the basics!

Johanna 4 months ago

A contract needs intention, capacity, offer, acceptance, and consideration.

Catrice 4 months ago

Sounds right, but what about minors? They can't contract, right?

Gregg 4 months ago

Don't forget about acceptance! That's key too.

Colby 4 months ago

Wait, can a verbal contract really be binding?

Vallie 6 months ago

Totally agree, those are the basics!

Jesusa 6 months ago

A contract needs intention, capacity, and consideration.

Trinidad 7 months ago

I feel like I might have mixed up intention and capacity; I know both are essential, but I can't remember how they differ in practice.

Na 7 months ago

I practiced a similar question about the capacity to contract, and I remember that minors usually can't enter into binding contracts.

Veronica 7 months ago

I think consideration is really important, but I can't recall if it has to be monetary or if services can count too.

Ty 7 months ago

I remember that a contract needs an offer and acceptance, but I'm not sure if both parties need to be of the same age to be valid.

CIPS L4M8 Exam - Topic 9 Question 71 Discussion