Legally Binded Definition
A legal binding is a formal agreement between two parties that creates an enforceable obligation to do (or not do) something. The term is often used in reference to contracts, such as employment contracts, leases, and wedding vows.
When two people or entities enter into a legally binding contract, they are agreeing to certain terms and conditions that they will both be held accountable for. If one party fails to uphold their end of the bargain, the other party can take legal action against them.
Contracts are typically written documents, but they can also be verbal agreements. Whether written or spoken, all contracts must contain certain elements to be considered legally binding. These include an offer, acceptance of the offer, consideration (something of value exchanged by both parties), and mutuality of obligation (both parties are obligated to fulfill the terms of the contract).
If you are ever unsure whether you are entering into a legally binding contract, it is always best to consult with an attorney.
