CPPB Domain IV - Contract Development and Management questions with correct answers

6 Elements of a Contract - Correct Answer-1)Offer and Acceptance 2)Definiteness 3)Legal Consideration 4)Mutuality of Obligation 5)Competent Parties 6)Legal Purpose Element of a Contract: Offer and Acceptance - Correct Answer-A promise or comittment to do, or not do, a specified thing in the future. Example: provide a good or service. An acceptance is a promise to do something in response to an offer. Element of a Contract: Definiteness - Correct Answer-The material terms of an agreement that are specifically expressed. Specificity is required because agreements that are vague cannot be enforced. Element of a Contract: Legal Consideration - Correct Answer-Something of consideration which is exchanged between parties that serves to form or bind a contract. Usually considered an exchange of money for goods/services. Element of a Contract: Mutuality of Obligation - Correct Answer-All parties to an agreement are obligated or none of the parties are obligated. Element of a Contract: Competent Parties - Correct Answer-Classes of persons that the law deems are capable of entering into an agreement. Those capable of making independent decisions. Element of a Contract: Legal Purpose - Correct Answer-The law will not enforce agreements which are for illegal acts. An agreement can only be for what is allowed by law.