What is one of the requirements for parties to be considered competent in a contract?

For parties to be deemed competent in a contract, it is essential that they are not influenced by drugs or alcohol. This criterion ensures that individuals have the mental capacity to understand the contract's terms and implications at the time of signing. If a party is under the influence, their ability to make informed decisions can be severely impaired, which may invalidate their consent and the enforceability of the contract.

While other options mention financial stability, educational attainment, and a specific age requirement, these factors do not directly address mental competence in the context of contract law. Financial stability is not a requirement for competence in a contract. Having a college degree is irrelevant, as contractual competence does not hinge on formal education. Lastly, while the age of majority (usually 18 in most states) is significant, being above 21 is not universally required for all contracts. Therefore, the focus on drug and alcohol influence highlights the critical aspect of ensuring that all parties can fully comprehend and agree to the contract's terms.