Florida Bail Bonds Practice Exam

Which term describes a legally binding agreement?

1. Void

2. Valid

3. Waiver

4. Execution

The correct answer is: Valid

A legally binding agreement is referred to as valid. A valid contract meets all the essential elements required by law, such as offer, acceptance, consideration, mutual consent, and legal capacity. When all these elements are in place, the agreement carries legal weight, allowing parties to enforce the terms in court if necessary. In contrast, the term void refers to agreements that lack legal effect from the outset, meaning they are unenforceable and do not create any legal obligations. A waiver is a voluntary relinquishment of a known right and does not describe an agreement itself. Execution refers to the act of signing a contract or executing its terms, which is part of creating a valid agreement but does not define it. Thus, valid is the term that accurately captures the essence of a legally binding agreement.