A legally binding agreement is an agreement that requires both parties to adhere to a set of predetermined terms and conditions. It is a contract between two individuals or entities, and it must be signed by the parties involved and be enforceable by law in order for it to be binding. A legally binding agreement is also known as a valid contract. It is not necessary that a lawyer be involved with the drafting and signing of a legally binding agreement, although some more complex agreements may require this. The key elements of a legally binding agreement are twofold: offer and acceptance, consideration, mutual assent and capacity. In addition, the agreement must be lawful and must not violate the laws of either party’s country of residence or business.