Which of the following is NOT one of the essential elements of a contract?

Which of the following is NOT one of the essential elements of a contract?

• A. Capacity
• B. Mutual Assent
• C. Monetary Value
• D. Lawful Purpose

Answer: (C)

The essential elements of a contract typically include capacity, mutual assent, and lawful purpose. Capacity refers to the legal ability of parties to enter a contract, while mutual assent means that all parties involved agree to the terms of the contract. Lawful purpose indicates that the contract must be for a legal objective, which is essential for the contract to be enforceable. Monetary value, while often present in contracts, is not necessarily an essential element. A contract can exist even if there is no money exchanged, as long as there is a clear agreement (consideration) between the parties involved, which can take various forms, such as services, goods, or a promise. Therefore, not all contracts require a specific monetary value for them to be valid, making this the correct answer.

The essential elements of a contract typically include capacity, mutual assent, and lawful purpose. Capacity refers to the legal ability of parties to enter a contract, while mutual assent means that all parties involved agree to the terms of the contract. Lawful purpose indicates that the contract must be for a legal objective, which is essential for the contract to be enforceable.

Monetary value, while often present in contracts, is not necessarily an essential element. A contract can exist even if there is no money exchanged, as long as there is a clear agreement (consideration) between the parties involved, which can take various forms, such as services, goods, or a promise. Therefore, not all contracts require a specific monetary value for them to be valid, making this the correct answer.