Nevada Timeshare License Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

To form a valid contract, several essential elements must be present. These elements typically include an agreement between the parties, consideration (something of value exchanged), and a legal obligation (the intention to create legal relations).

Performance, while often a part of contract execution and fulfillment, is not a necessity for the formation of the contract itself. In other words, a contract can be formed with an agreement (offer and acceptance), consideration, and a legal basis, without requiring immediate performance of the contract's terms. Therefore, performance is considered more of an action that follows the formation of the contract rather than a foundational element required to establish the contract in the first place.

Understanding these distinctions is crucial because they highlight that while a contract outlines expectations for future action, the contract itself exists upon agreement and other foundational aspects, regardless of whether such actions have been taken.