California Insurance License Exam Practice Test Practice Question
All of the following are requirements of a contract EXCEPT
Correct Answer: B
Rationale: A contract must have a legal purpose (A), ensuring that the agreement adheres to the law. The parties involved must also be legally competent (C), meaning they have the capacity to understand and agree to the contract terms. Additionally, there must be an offer and acceptance (D), which establishes mutual agreement between the parties. However, equal consideration (B) is not a requirement; while consideration must be present, it does not have to be equal in value. Thus, options A, C, and D are essential elements of a valid contract, whereas B is not.
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