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.
Want to find out more about procurement?
Access more blogs, articles and FAQ's relating to procurement