Leasing License Practice Exam

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What does 'possibility to complete' refer to in contract elements?

The likelihood that a contract will be fulfilled
The ability to execute the contract as agreed
The financial backing for the contract
The realistic expectation of performance

The correct answer is: The ability to execute the contract as agreed

The term 'possibility to complete' within the context of contract elements refers to the ability to execute the contract as agreed. This implies that the parties involved have the necessary means, resources, and intentions to fulfill their obligations laid out in the contract. It encompasses the practical aspect of how and when the terms of the agreement can be met. For instance, a contract may stipulate the delivery of goods by a specific date. The 'possibility to complete' would signify that the seller not only intends to deliver the goods but also possesses the logistics, inventory, and capability to do so as outlined in the agreement. This concept is central to ensuring that a contract is enforceable and that both parties can legitimately expect performance as per their original agreement. It highlights the importance of each party being capable of meeting their contractual obligations for the contract to be valid and effective.