In order for a contract to be legally binding, what must be TRUE?
a) All parties must consent to the terms of the agreement by shaking hands.
b) The purpose of the agreement between the parties can be legal or illegal.
c) All parties entering into a contract accept the risk that they could be tricked or coerced.
d) The contract parties must be legally competent to enter into a contract.

in order for a contract to be legally binding, all parties must be *legally competent.* this means that all parties cannot be minors or something like that. they must be legally able to enter into the contract for it to be legally binding.

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chilljain33 chilljain33 · Answer 2 · 2021-12-18T07:18:09+01:00

D- The contract parties must be legally competent to enter in to a contract for the contract to be legally binding. There are various points that must be ticked for the contract to have legal acceptance.

Every party to the contract must not be a disqualified person to do so and shall have legal capabilities in their hands. They must be known to the fact that their gestures or actions mean that a contract is legally binding upon them.

A contract becomes legally binding when all the parties to the contract have given their consent to have accepted the terms of the contract by either their gestures, spoken words or acceptance on contract instruments.

Parties must be legally competent by being of sound mind, major at age, qualified to enter into a contract, not refrained to so by any court order, on whom any investigation by the judiciary or police authorities is currently not undergoing.

The above mentioned persons are referred to as the persons who are legally competent to enter into contract. Any other such person who is incompetent will lead to the contract being void ab initio.

Hence, the true option is D that the both the parties to the contract must be legally competent to enter into a contract.

To know more about Legally binding contracts, refer to the link below.

https://brainly.com/question/7519265