Ace the Hawaii Pre-Licensing Exam 2025 – Surf Your Way to Real Estate Success!

A valid contract must have certain essential components for it to be enforceable by law. One of those components is the requirement of competent parties. This means that all parties entering into the contract must have the legal capacity to do so. Typically, this encompasses being of legal age, sound mind, and not being under any duress or undue influence.

Competent parties ensure that those involved understand the nature of the contract and can make informed decisions. If one of the parties is deemed incompetent, the contract may be considered void or voidable.

Other components of a valid contract include mutual agreement (offer and acceptance), consideration (something of value exchanged), and a lawful purpose. While requirements such as the notation of public notaries or the use of complex legal jargon might add credibility or clarity to certain agreements, they are not essential for all contracts. Similarly, public agreement is not a requisite condition for a valid contract, as contracts are typically private agreements between specific parties.