Identifying the Requirements of a Valid Contract Match each condition 1 through 5 with the descriptions in a through e. Conditions of a Valid Contract 1. Contract has commercial substance. 2. Contract has approval. 3. Rights and obligations are identified. 4. Payment terms are identified. 5. Collection is probable. Description of Contract Conditions \begin{tabular}{|c|c|c|} \hline 4 & & a. Intention by each party of a contract to abide by the terms of the contract. \\ \hline 3 & & *o. Intention and ability of a customer to pay substantially all of the consideration due per contract. \\ \hline 1 & & x. Information stated in contract about payment terms. \\ \hline 5 & & B. Business purpose for the transfer of goods to a customer in exchange for consideration is identified in the contract. \\ \hline & ^ & . Information regarding the rights and obligations of each party in a contract. \\ \hline \end{tabular}