Under contract law, a valid contract requires:

A Only a written document

B Offer, acceptance, consideration, capacity, and legality

C Only verbal agreement

D Only payment

✓ Correct Answer: Option B

The five elements of a valid contract: offer, acceptance, consideration, legal capacity, and lawful purpose.

💡 Why is B) the correct answer?

The correct answer to the question "Under contract law, a valid contract requires:" is Option B: Offer, acceptance, consideration, capacity, and legality.

The other options — A) Only a written document, C) Only verbal agreement, D) Only payment — are incorrect for this CPA Exam Prep question. As explained above: The five elements of a valid contract: offer, acceptance, consideration, legal capacity, and lawful purpose.

📚 About This CPA Exam Prep Practice Question

This 2-level CPA Exam Prep question from the Regulation (REG) topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free CPA Exam Prep practice test or use flashcards for spaced repetition review.

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Under contract law, a valid contract requires:

✓ Correct Answer: Option B

📚 About This CPA Exam Prep Practice Question

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