What is a Binding Agreement?

Binding agreements are legal contracts that can be enforced at both the federal and state level. To be considered “binding” an agreement must meet the following criteria:

• Legality — The contract must align with all federal, state, and local laws. 
• Consideration — The benefit that both parties receive from the agreement.
• Capacity — All parties must be in a position to legally sign the contract.
• Offer and acceptance — One party offers something and the other party must accept it.
• Mutuality — Both parties must have intentions to complete their obligations, and have an understanding that they will be bound by the contract.