Which term describes the compelling nature of a valid contract that is necessary for it to be legally binding?

The compelling nature of a valid contract that is necessary for it to be legally binding is referred to as enforceability. Enforceability means that a contract can be upheld in a court of law; it has the necessary elements that a legal system recognizes, allowing parties to seek legal remedy in case of a breach.

To have a valid and enforceable contract, certain elements must be present: offer, acceptance, consideration, capacity, and legality. When these elements are satisfied, the contract is considered enforceable, meaning that if one party fails to fulfill their obligations, the other party has the right to enforce the contract through legal means.

Mutual assent refers to the agreement of both parties to the terms of the contract, which is important but does not on its own guarantee that a contract can be enforced legally. Consideration involves the value that is exchanged, which is also a critical element but isn’t directly related to the contract's enforceability. Legitimacy, while it may imply that the contract needs to be lawful, does not specifically indicate the mechanism that allows the contract to be enforced in a court setting. Hence, enforceability is the key term that encapsulates the essence of what makes a contract legally binding.