What describes a basic characteristic of a contract?

A basic characteristic of a contract is that it is legally binding and involves an agreement for the exchange of goods or services. This means that once the parties enter into a contract, they are obligated to follow the terms laid out within it. The legal binding nature ensures that if one party fails to comply with the contract terms, the other party has the right to seek legal recourse to enforce the agreement or seek compensation for damages.

The essence of contracts typically revolves around mutual consent, consideration (something of value exchanged), and the intention to create legal obligations. While contracts can take different forms, including written, oral, or implied, the fundamental requirement is that they establish a clear agreement that is enforceable by law.

The other options suggest requirements or conditions that may not universally apply to all types of contracts. For instance, having witnesses or needing a notary can be necessary for certain contracts but are not universal requirements for all contracts. Similarly, while verbal contracts can be valid under certain circumstances, they do not constitute the basic characteristic of a contract. The focus on legality and the exchange of goods or services captures the essential nature of what a contract is fundamentally meant to achieve.