What is a requirement for parties entering a valid contract?

A requirement for parties entering a valid contract is that they must be of legal age, which is typically 18 years old in most jurisdictions. This is important because individuals who are not of legal age are viewed as not having the capacity to understand and enter into a binding agreement. The law recognizes that minors may not have the maturity or understanding necessary to commit to the complexities and responsibilities that come with a contract. As a result, contracts entered into by individuals under this age may be void or voidable.

The other options do not impact the formation of a valid contract universally. For instance, while residency and having a valid driver's license might be relevant in specific contexts or for particular types of contracts, they are not general requirements for the validity of all contracts. Having a college degree also does not influence contract validity, as educational qualifications do not determine a person's legal capacity to contract. Therefore, being of legal age is the foundational requirement necessary for parties to enter into a valid contract.