What requirement must be met for a contract to be considered valid?

For a contract to be considered valid, one essential requirement is that all parties involved must have the legal capacity to contract. This means that the individuals entering into the contract must be of legal age, which typically is 18 years old in most jurisdictions, and must possess the mental competency to understand the terms and implications of the contract.

When parties lack legal capacity, such as minors or individuals deemed mentally incapacitated, the contract may be rendered void or voidable. Valid contracts rely on the mutual consent of capable parties to ensure that everyone involved understands and agrees to the obligations and benefits of the agreement.

The other options refer to different aspects of contracting that, while important in certain contexts, do not constitute a universal requirement for validity. For example, not all contracts require a monetary value, as some contracts may involve non-monetary exchanges. Additionally, signatures in the presence of a witness or notarization are not universally mandatory for a contract’s validity, though these may be required for specific types of contracts or to enhance legal enforceability.