Which of the following is NOT one of the three elements of a contract?

A valid contract is based on three essential elements: competent parties, legal purpose, and offer and acceptance. Competent parties refer to individuals who have the legal capacity to enter into a contract, meaning they are of legal age and sound mind. Legal purpose ensures that the contract's objectives comply with the law and public policy, which means that the agreement cannot involve any illegal activities. Offer and acceptance refer to the mutual agreement between the parties to the terms of the contract, where one party makes a proposal, and the other party agrees to it.

While written documentation can provide clarity and serve as evidence of a contract, it is not a mandatory element for a contract to be considered valid. Some contracts can be verbal or implied based on actions. This distinction is important because it shows that not all agreements require written form to be enforceable. Understanding these elements can help adjusters evaluate the validity of contracts they may come across in their work, especially in the context of insurance claims and agreements.