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

• A. Capacity
• B. Negotiation
• C. Witnesses
• D. Public notary

Answer: (A)

Capacity is indeed a fundamental element of a valid contract. For a contract to be enforceable, the parties involved must possess the legal ability to enter into a binding agreement. This includes being of a certain age (usually the age of majority) and having sound mental capacity. Individuals who lack capacity, such as minors or those deemed mentally incompetent, cannot legally enter into contracts, which could render the agreement void or voidable.

Negotiation, while important in the formation of a contract, is not itself an essential element. It pertains to the discussions and terms leading to an agreement, rather than the validity of the contract itself.

Having witnesses can enhance the enforceability of certain agreements, particularly in specific contexts or jurisdictions, but it is not universally required for a contract to be valid.

A public notary may serve to authenticate signatures and ensure the contract's validity in certain situations, but not all contracts require notarization to be considered legally binding.

Thus, capacity is essential because it ensures that the parties involved are legally empowered to make commitments and are aware of the obligations they are undertaking.