Humber/Ontario Real Estate Course 1 Exam Practice

Which of the following is NOT a requirement for an enforceable contract?

1. One party must benefit from the contract.

2. Mutual agreement is necessary.

3. The contract's purpose must be lawful.

4. The contract must have clear and specific terms.

The correct answer is: One party must benefit from the contract.

In contract law, for an agreement to be enforceable, there are certain basic requirements that must be met. One of the fundamental principles is that both parties should benefit or receive consideration for the contract to be valid. If one party does not receive any benefit or consideration, the contract lacks mutuality of obligation, which is necessary for a valid contract. Therefore, the correct answer is A. Option B, stating that mutual agreement is necessary, is a requirement for an enforceable contract. Both parties must agree to the terms of the contract for it to be binding. Option C, specifying that the contract's purpose must be lawful, is another essential requirement for a contract to be enforceable. Contracts with illegal purposes or objectives are generally considered void and unenforceable by the court. Option D, which mentions that the contract must have clear and specific terms, is also critical for the contract's enforceability. Clarity in the terms of the contract helps avoid misunderstandings and disputes between the parties. Overall, the option stating that "One party must benefit from the contract" is not a valid requirement for an enforceable contract, making it the correct answer.