Enforceable by law, a contract is a legally binding agreement made between two or more parties. If the parties argue about the validity of a contract, the case goes before the courts, which determine if there is a breach of contract.

Is a contract a legally binding document?

In order for a contract or agreement to be legally binding, there needs to be consideration, which is when both parties acknowledge they know what they're agreeing to. If a person gets tricked, coerced, or forced into an agreement, this won't be considered legally binding.

Are all contract legally binding?

Are all contracts legally binding? No, but the exclusions are different to what you might expect. For contracts to be legally binding, they must comprise of the four elements of a contract: offer, acceptance, consideration and an intention to create legal relations.