Which of the following are components of a contract?

The correct choice identifies the fundamental components essential for forming a valid contract. In contract law, an offer and acceptance signify the mutual agreement between parties, establishing the basis of the contract. Consideration refers to the value exchanged between parties, which is a crucial element ensuring that both have something to gain from the arrangement. Mutual assent indicates that all parties involved truly understand and agree to the terms of the contract, ensuring that there is a clear meeting of the minds. Lastly, capacity to contract means that all parties are legally able to enter into a binding agreement, which is vital to ensure the contract's enforceability.

These elements underscore the validity and enforceability of a contract, making this choice the most comprehensive and accurate representation of what constitutes a legally binding agreement. Other choices, while they may list terms associated with contracts, fail to encompass all key components necessary for validity. For example, some options may omit consideration or capacity, which are critical to the contract's legitimacy.