What are the requirements for a valid contract under Utah law?

For a contract to be considered valid under Utah law, certain foundational elements must be present. These elements include an offer, acceptance, consideration, capacity, and lawful purpose.

• Offer is the initial proposal made by one party to another, indicating a willingness to enter into a contract under specified terms.

• Acceptance occurs when the other party agrees to the terms of the offer, resulting in mutual assent.

• Consideration refers to something of value that is exchanged between the parties, which is essential for enforceability; this distinguishes a contract from a mere gift.

• Capacity ensures that the parties entering the contract have the legal ability to do so, meaning they must be of sound mind, not minors, and not under duress or coercion.

• Lawful purpose means that the contract’s objective must be legal and not against public policy.

The inclusion of all these elements together delineates a valid contract within Utah law, confirming that the parties have entered into a legally binding agreement with a clear mutual understanding of their obligations and the exchange of consideration.

The other answer choices either omit essential elements or introduce unnecessary criteria that do not align with established contract law requirements. For instance, mere understanding or agreement between parties