What are the four requirements of a legal contract?

The correct choice identifies the fundamental components essential for a contract to be legally binding: Agreement, Consideration, Competent Parties, and Legal Purpose.

An agreement reflects the mutual understanding between parties regarding the terms of the contract, indicating that there has been a clear offer by one party and acceptance by another. This does not just need to be a verbal agreement; it can also be implied through actions.

Consideration refers to the value exchanged between the parties involved. It is an essential aspect of contracts because it demonstrates that something of value is being given to support the agreement, which distinguishes a legally binding contract from a mere promise.

Competent parties are individuals who are legally capable of entering into a contract. This means they must be of legal age, mentally sound, and not under coercion or duress. Ensuring that all parties are competent is crucial to uphold the contract's enforceability.

Legal purpose ensures that the contract’s provisions comply with existing laws. A contract cannot be enforced if its purpose is illegal or against public policy. This principle safeguards against agreements that might cause harm or violate societal norms.

Therefore, this option encapsulates all necessary elements for forming a valid contract, making it the most comprehensive answer regarding legal contract requirements.