A binding agreement is one that is enforceable under state or federal laws. Such an agreement is said to be “legally binding” under contract laws. In order for an agreement to be binding as a contract, there usually the following factors usually need to be met:
Thus, there needs to be a clear indication that the parties understand the agreement terms, and that they are willing to enter into such an agreement under the negotiated terms.
Failure to meet any of the above requirements can make an agreement not legally binding. In addition, other factors can make an otherwise legitimate agreement into one that isn’t valid. These include:
In most cases, a non-binding agreement can’t be enforced in court. In some cases, if both parties consent to it, the court may allow them to re-write some or all of the contract, in order to save the business relationship between the parties. In other cases, the judge may issue a damages award if one party’s conduct has caused the other party to experience losses.
It’s important that agreements be created in such a way that they are binding and therefore enforceable under law. You may wish to hire a lawyer if you need assistance with a binding agreement. Your attorney can help you with the drafting, reviewing, and editing of a contract document. Also, your lawyer will be able to provide representation in court if you need to file a lawsuit over a legal dispute.
Last Modified: 06-19-2013 11:45 AM PDTLaw Library Disclaimer
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