Certified Professional Public Buyer (CPPB) Practice Test

What are the seven elements of a contract?

1. Offer, acceptance, market demand, supplier capability, pricing, legal purpose, warranty

2. Offer, acceptance, definiteness, legal consideration, mutuality of obligation, competent parties, legal purpose

3. Terms, pricing, delivery, performance standards, acceptance criteria, service agreements, legal review

4. Negotiation, compliance, specifications, payment terms, execution, review, termination

The correct answer is: Offer, acceptance, definiteness, legal consideration, mutuality of obligation, competent parties, legal purpose

The answer is correct because it identifies the seven essential elements of a contract that are necessary for it to be legally enforceable. Each of these elements plays a critical role in forming a valid contract: 1. **Offer**: This is the proposal made by one party to another indicating a willingness to enter into a contract under specific terms. 2. **Acceptance**: For a contract to be formed, the party receiving the offer must accept it as presented without modifications. 3. **Definiteness**: The terms of the contract must be clear enough that the parties understand what is being agreed upon. Vague or ambiguous terms can render a contract unenforceable. 4. **Legal consideration**: This refers to something of value that is exchanged between the parties. Consideration is essential as it confirms that both parties have something to gain from the contract. 5. **Mutuality of obligation**: Both parties must have an obligation to fulfill. This means there is a mutual agreement where each party is bound to perform their part of the deal. 6. **Competent parties**: The individuals or entities entering into the contract must have the legal capacity to do so, meaning they are of age and sound mind. 7. **Legal purpose**