Introductory Business Law CLEP Prep Practice Exam 2026 - Free Practice Questions and Study Guide

Question: 1 / 400

The five essential elements of contract formation include

Agreement, consideration, inducement, legality, and assurance

Agreement, consideration, legality, warranty, and objective

Agreement, consideration, capacity, legality, and performance

The other options are incorrect because they either include elements that are not essential for contract formation, such as inducement, warranty, objective, or treble damages, or they are missing an essential element, such as capacity or performance. Agreement refers to the mutual understanding and acceptance of the terms of the contract, consideration refers to the exchange of something of value between the parties, legality ensures that the contract is lawful and not against public policy, and performance refers to the fulfillment of the obligations outlined in the contract. Without all of these elements, a contract cannot be legally formed.

Get further explanation with Examzify DeepDiveBeta

Agreement, consideration, contingency, legality, and treble damages

Next Question

Report this question

Download Introductory Business Law CLEP Prep Practice Exam PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy