What is an essential element of a contract?

An essential element of a contract is the inclusion of lawful subject matter, consideration, and competent parties.

Lawful subject matter refers to the requirement that the contract must pertain to a legitimate purpose and comply with the law. If the subject of the contract is illegal, the contract is void.

Consideration involves something of value that is exchanged between the parties. This means that each party must provide something of value to the other party to make the contract binding. It can be money, services, or even a promise to act or refrain from acting.

Competent parties signify that all individuals involved in the contract must have the legal capacity to enter into it. This generally means they are of legal age, mentally competent, and not under duress or undue influence.

While elements like written documentation and witness signatures can be important in creating enforceable contracts, they are not universally required for all contracts. For example, many contracts can be verbal and still hold validity, provided they meet the essential elements outlined above. Thus, option C captures the core components necessary for the formation of a valid and enforceable contract.