What is the definition of a valid contract?

A valid contract is defined as one that is legally binding and enforceable in a court of law. This means that all necessary components of a contract are present, including offer, acceptance, consideration, capacity, and legality. When a contract meets these criteria, it holds legal weight, and if one party fails to fulfill their obligations, the other party can seek legal remedies.

The other options do not meet the criteria for a valid contract. For example, a contract that is not enforceable would lack the legal validity required for it to be considered valid. An informal agreement does not necessarily have the legal structure required to be considered a valid contract, and a verbal contract, while it can be valid, does not include the complete range of formats a valid contract can take. Thus, the definition focused on legality accurately captures what constitutes a valid contract in real estate and legal contexts.