What is a binding contract signed
A binding contract has the essential elements of a contract but requires capacity and legal purpose. The essential elements of a contract are mutality of obligation (comprised of offer and acceptance), definite terms and consideration. If these elements, or capacity and legal purpose are lacking, then the contract may not be binding. What is a Binding Agreement? A binding agreement is one that is enforceable under state or federal laws. Such an agreement is said to be “legally binding” under contract laws. The definition of a contract is a legally binding, and enforceable by law, agreement made between two or more parties. In cases of dispute when the parties are arguing whether a contract, or fundamentals of it, have been broken, it may be required to take the case before the courts.