Leasing License Practice Exam

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Which of the following must be present for a contract to be enforceable in court?

Oral agreement
Mutual agreement
Witnessed contract
All parties must be present

The correct answer is: Mutual agreement

For a contract to be enforceable in court, mutual agreement, often referred to as "meeting of the minds," is essential. This means both parties must genuinely understand and agree on the terms of the contract. It reflects the concept that all parties involved must have a clear understanding of what they are agreeing to, ensuring that there is a shared intent. A contract that lacks mutual agreement can lead to disputes about the intentions and obligations of the parties, making it difficult to enforce. While an oral agreement can be legally binding under certain circumstances, written contracts are generally preferred due to the clarity they provide. Witnessing a contract or having all parties physically present is not a universal requirement for enforceability; these factors may enhance credibility or help in proving terms but are not strictly necessary for the agreement to be valid in the eyes of the law.