Which of the following is NOT one of the six elements needed for a binding contract according to ICLACO?

A binding contract requires several key elements to be enforceable, and among them are legal subject matter, acceptance, and consideration. These components ensure that the agreement is comprehensive and that it adheres to the legal standards necessary for it to be upheld in a court of law.

Legal subject matter means that the contract's purpose is lawful and not contrary to public policy. Acceptance refers to the agreement by both parties to the terms of the contract, which is vital for mutual consent. Consideration involves something of value exchanged between the parties, whether it be services, goods, or money. This element is essential because it differentiates contracts from mere promises.

The presence of discretion, however, is not a recognized element necessary for a binding contract under ICLACO. While a party may have discretion regarding how to fulfill their obligations under a contract, it is not one of the foundational aspects that must be present for the contract to be valid. Thus, the choice that identifies discretion as not one of the necessary elements correctly highlights a misunderstanding of the essential components required for contract formation.