Binding Agreement Definition
A binding agreement is a legal contract between two or more parties that creates enforceable rights and obligations. The purpose of a binding agreement is to establish the terms of the relationship between the parties, including their rights and responsibilities.
A binding agreement can be created in many ways, including through a written contract, an oral agreement, or even just by someone’s conduct. For example, if you buy a car from a dealership, you have entered into a binding agreement. The dealership has certain obligations to you, such as delivering the car and providing a warranty, and you have certain obligations to the dealership, such as making payments on time.
There are many different types of binding agreements, but some of the most common are employment contracts, leases, and purchase agreements.