What does the term "lawful object" refer to in a contract?

Prepare for the Humber College Real Estate Course 1 Exam. Study with flashcards and multiple choice questions, each with hints and explanations. Enhance your exam readiness!

The term "lawful object" in a contract refers specifically to the requirement that the subject matter of the agreement must be legal. For a contract to be enforceable, its object must not violate any laws or public policy. This means that any agreement surrounding illegal activities or contracts that promote unlawful behavior is considered void and unenforceable in a court of law. Thus, when a contract has a lawful object, it ensures that the agreement is grounded in legal principles, giving it validity and the potential for enforcement.

The other choices address different aspects of contract formation. The intentions behind the offer and acceptance pertain to mutual consent, while the clarity and specificity of terms focus on how well the contract outlines its provisions. The capacity of the parties addresses whether those involved can legally enter into a contract. While all these elements are important for a valid contract, it is the legality of the subject matter that pertains directly to the concept of a "lawful object."

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