A legally binding agreement between two parties is a formal, written contract that sets out the rights, obligations and responsibilities of each party. It outlines the agreed-upon terms of the arrangement in such a way that both parties are held to account if one or both fails to fulfil their obligation as stated in the agreement. All too often, people enter into agreements with another party without fully understanding the scope and implications of what they are agreeing to; however, by taking the time to carefully read, discuss, and negotiate the terms of any legally binding agreement, both parties can rest assured that their interests will be respected and protected.