Which item is the first in the NO AC mnemonic representing a defense to contract formation?

Which item is the first in the NO AC mnemonic representing a defense to contract formation?

• A. No defenses
• B. Offer
• C. Acceptance
• D. Consideration

Answer: (A)

In contract formation, you start by asking whether any defenses could prevent the contract from forming. The first item in the NO AC mnemonic is No defenses, which reminds you to check for issues like lack of mutual assent, incapacity, duress, misrepresentation, or illegality. If none of these defenses apply, the contract can form and you then move on to the standard formation elements: an offer, acceptance, and consideration. The other terms describe those formation elements themselves, not defenses, so they’re considered after confirming there are no defenses.

In contract formation, you start by asking whether any defenses could prevent the contract from forming. The first item in the NO AC mnemonic is No defenses, which reminds you to check for issues like lack of mutual assent, incapacity, duress, misrepresentation, or illegality. If none of these defenses apply, the contract can form and you then move on to the standard formation elements: an offer, acceptance, and consideration. The other terms describe those formation elements themselves, not defenses, so they’re considered after confirming there are no defenses.