Virginia Real Estate Level 1 Pre-License (PL) Foundations Practice Test 2025 - Free Real Estate License Practice Questions and Study Guide

For a contract to be legally binding, it is essential that all parties involved possess the legal capacity to enter into that contract. Legal capacity refers to the ability of individuals to understand the nature and consequences of the agreement they are entering into. This means that parties must be of legal age (typically 18 years or older in Virginia), mentally competent, and not under undue influence or duress when agreeing to the terms of the contract.

If any party lacks legal capacity, the contract may be deemed void or voidable, meaning it cannot be enforced by law. This foundational principle ensures that all parties are making informed decisions and can hold up their end of the agreement. While notarization, specific details, and local filing can be important for certain types of contracts, they are not universally required for a contract to be legally binding. The key criterion is the capacity of the parties involved.