Definition, Meaning & Synonyms

binding contract

Noun

/ˈbaɪndɪŋ ˈkɒntrækt/

Definition

A legally enforceable agreement between two or more parties that creates mutual obligations.

Examples

The lease agreement was a binding contract that specified all terms of tenancy.
They signed a binding contract to complete the project by the end of the year.
Verbal agreements can sometimes be considered binding contracts if they meet certain legal criteria.

Meaning

A binding contract requires the parties involved to adhere to the terms outlined within the agreement. If one party fails to meet these terms, the other party has the right to take legal action.