Which term describes an agreement meeting legal requirements for enforceability?

Prepare for the CA Foundation Business Law Exam with our comprehensive quiz. Utilize flashcards and multiple-choice questions, each complete with hints and explanations. Ace your exam confidently!

A valid contract is one that meets all the necessary legal requirements for enforceability. To be considered valid, a contract typically must have an offer, acceptance, consideration, the capacity of the parties to contract, and a lawful object. Each of these elements ensures that the agreement is not only recognized by the law, but also provides a framework for potential enforcement should one party fail to fulfill their obligations.

In contrast, breach of contract refers to a failure to perform as stipulated in a valid contract and does not represent an agreement itself. Quasi contracts are not actual contracts but rather are obligations imposed by law to prevent unjust enrichment, indicating that they do not meet the usual requirements for a legally enforceable agreement. Contingent contracts, although valid if they meet the legal criteria, depend on the occurrence of a specific event to determine enforceability, which makes them conditional rather than universally valid.

Thus, a valid contract distinctly signifies an agreement that holds full enforceability under the law, explaining why it is the correct choice in the context of this question.

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