What legal concept helps establish whether a contract can be enforced?

A contract must meet several key legal concepts for it to be enforceable, and each of the options presented contributes to this overall assessment.

The legality of purpose refers to the requirement that a contract's content must comply with the law and must not involve illegal activities. Contracts that have unlawful subject matter are void and unenforceable.

Competence of parties outlines the necessity for individuals entering into a contract to have the legal capacity to do so, meaning they must be of legal age, of sound mind, and not disqualified by law. If one of the parties lacks this competence, the contract may be rendered voidable or unenforceable.

Intention to create legal relations involves the assumption that parties entering a commercial agreement intend for it to be legally binding. Without this intention, especially in social or domestic agreements, the enforceability of the contract could be questioned.

Since all these components play a critical role in determining whether a contract can be enforced, recognizing their combined importance leads to the conclusion that all of the above factors are essential in establishing the enforceability of a contract.