Which of the following statements concerning contracts is correct?

• A. I only
• B. II only
• C. Both I and II
• D. Neither I nor II

Answer: (A)

Understanding contracts hinges on recognizing the essential elements that make an agreement enforceable: there must be a clear offer, an acceptance of that offer, and consideration exchanged between competent parties who intend to be bound, with a lawful purpose and genuine assent. When two statements about contracts are presented, you test each against these fundamentals. The correct statement is the one that accurately reflects that an enforceable contract requires offer, acceptance, and consideration (and freedom from issues with capacity or illegality); statements that claim a contract can be binding without one of these elements or that all contracts must be in writing typically misstate the law. Since the given answer indicates only the first statement is correct, that means it aligns with these basic contract principles, while the second does not.