Which of the following constitutes a legal purpose for a contract?

Study for the New Jersey Title Insurance Producer Exam. Study with flashcards and multiple-choice questions, each question has hints and explanations. Get ready for your exam!

A legal purpose for a contract is essential for it to be enforceable. In this scenario, shipping goods for a valid business exemplifies a lawful activity that legal contracts can be based on. Such contracts are recognized and upheld by the legal system, as they involve legitimate commerce and comply with relevant laws and regulations.

In contrast, arranging loans for illegal activities constitutes an illegal purpose, rendering any contract related to it unenforceable. Additionally, not all agreements made between friends automatically qualify as legal contracts, as they must also meet legal requirements such as consideration and mutual consent to be valid. Lastly, while some contracts may be oral or informal, certain agreements legally require written documentation to be enforceable, thus negating the notion that all contracts can be valid without being written.

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