Which criteria for a valid contract involves parties being of sound mind and legal age?

The criterion of "competent parties" is essential for a valid contract as it ensures that all individuals involved in the agreement have the legal capacity to enter into a contract. This means that the parties must be of legal age, typically 18 years or older in Minnesota, and must possess sound mental faculties at the time the contract is made. When parties are competent, they can understand the obligations, rights, and implications of the contract they are entering into.

This aspect is crucial because contracts entered into by minors or individuals deemed mentally incompetent can be voided or challenged in court, which undermines the enforceability of such agreements. Therefore, having competent parties helps to uphold the integrity of the contractual process and ensures that all parties are capable of fulfilling their responsibilities.

In contrast, mutual agreement refers to the requirement that both parties have a consensus on the terms of the contract. Lawful objective relates to ensuring that the contract's purpose is legal and not against public policy. Consideration involves the exchange of value between the parties. While these factors are important for a valid contract, they do not specifically address the issue of the parties' mental capacity and legal age, which are encompassed in the criterion of competent parties.