Legally binding agreements are terms undertaken during a contract. Legally binding means that one agrees with the terms under a written or spoken contract to behave in certain ways. Legally binding agreements indicates that an arrangement has been consciously made, and certain actions are now either necessary or prohibited. It involves transactions, events and products which contain an offer, terms and conditions, obligations, payment terms and liabilities.
For a contract to be legally binding, an agreement and consideration are essentially needed. Within the agreement and consideration lies a variety of requirements that add to the legality of a contract.
Opening an account in a bank, signing a lease, getting married or even using certain internet sites have terms and conditions that you have to agree on before you can proceed. These are called legally binding because you are agreeing to their terms. Violating such terms may cause legal consequences. A contract requires consideration for it to be considered legally binding. Both parties must understand what they are agreeing to. Tricking or pressuring a person to enter a certain agreement is not considered legally binding.
Legally binding contracts does not necessarily mean a written contract. A legally binding agreement can also be verbal under the eyes of the law. One example of a verbal legally binding agreement is riding a taxi. When you hire a taxi to take you to your destination, you are agreeing to pay for that service. In today’s upgraded terms of communication, like email, phone calls, and faxes, can be a means of exchange of services that can be considered legally binding contracts as long as there is an offer and acceptance.