Which of the following is an essential element of a contract?

An essential element of a contract is the presence of competent parties. This means that all parties involved in the contract must have the legal capacity to enter into the agreement. They should be of legal age, mentally competent, and not under duress or coercion. This element is critical because if a party lacks competence, the contract may be considered void or voidable, meaning it cannot be legally enforced.

Mutual trust may play a role in the relationship between the parties, but it isn't a formal requirement for the existence of a contract. While a written agreement can help clarify the terms and is necessary for certain types of contracts (like real estate), many contracts can be legally binding even if they are verbal. Public approval is not a requisite for a contract to be valid; a contract can be enforceable even if it is not recognized or approved by the broader public or governmental body. Therefore, the necessity of competent parties clearly stands out as a fundamental requirement for a valid contract.