Florida Bail Bonds Practice Exam

Which of these terms relates to a contract where parties can enforce their obligations?

1. Void

2. Agency

3. Valid

4. Perjury

The correct answer is: Valid

A valid contract is one that meets all the legal requirements for enforceability, allowing the parties involved to enforce their respective obligations. This means that the contract has the essential elements such as offer, acceptance, consideration, and capacity. When a contract is deemed valid, it is recognized by the law, ensuring that each party can rely on the terms agreed upon and seek remedies through the legal system if there's a breach. In contrast, a void contract is not enforceable by law due to elements that render it invalid from the outset, such as illegality or lack of capacity. Agency refers to the legal relationship where one person has the authority to act on behalf of another but does not directly relate to whether a contract can be enforced. Perjury, which involves lying under oath, has no relation to the enforceability of contracts. Therefore, valid is the appropriate term that reflects the enforceability of the obligations within a contract.