Introductory Business Law CLEP Prep Practice Exam

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Prepare for the CLEP Business Law Exam with flashcards and multiple-choice questions. Each question comes with hints and explanations to help you succeed. Master the content and pass your exam!

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Which of the following is considered a valid contract element?

Consideration
Signatures
Sequence of Negotiation
Venue

The correct answer is: Consideration

A valid contract must have three basic elements offer, acceptance, and consideration. Out of the given choices, only "Consideration" meets this criteria. While "Signatures" may be necessary to prove agreement, it is not a guaranteed element of every contract. "Sequence of Negotiation" may be an important factor in coming to a final agreement, but it is not a specific element of a contract. "Venue" refers to the location of a contract and is not a necessary component in determining its validity. Therefore, "Consideration" is the only choice that can be considered a valid contract element.