Which key component is essential for a contract to be enforceable?

Mutual assent, or agreement, between the parties involved is fundamental to the enforceability of a contract. This element, often referred to as a "meeting of the minds," means that all parties must understand and agree to the contract's terms and conditions. Without mutual assent, there is no contract, as it indicates that at least one party does not recognize or accept the obligations or benefits outlined in the agreement.

While written documentation and signatures can provide evidence of a contract and may be necessary for certain contracts to be enforceable (such as those involving real estate transactions), mutual assent remains the key principle that establishes the contract's existence. Clear payment terms are also important; however, they are just one aspect of the larger agreement. Approval from a regulatory body is not universally necessary for all contracts and varies depending on the contract type and governing laws. Thus, while these factors can influence a contract's enforceability, they do not serve as the defining component of agreement necessitated for any contract to be valid.