We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What are the Different Types of Binding Contracts?

Leigia Rosales
Updated May 16, 2024
Our promise to you
MyLawQuestions is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At MyLawQuestions, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

The requirements for binding contracts will vary among jurisdictions. In most common law jurisdictions, a binding contract requires three elements: offer, acceptance, and consideration. A valid contract may be oral or in writing in most jurisdictions; however, preference is given to written contracts that are signed by all the parties to the contract.

An offer must be made in all binding contracts. An offer is generally something of value, such as money, but it can also be an offer to do something or refrain from doing something that the person has a legal right to do or not to do. An example of an offer would be the purchase price in the sale of a property. The purchaser makes an offer to the seller to purchase the home for a specific amount of money. Another example of an offer is an offer of employment in an employment contract.

The next element found in binding contracts is acceptance of the offer. Once the offer has been made, in order for the contract to be binding on both parties, the offer must be accepted. Acceptance may be made in writing or verbally, but enforcement of a contract is much easier when the acceptance is made in writing. In most cases, acceptance is accomplished by the party signing the contract showing acceptance of the terms.

Consideration is the final element needed for binding contracts in most legal systems. Consideration is something of value given by the person making the offer to the person who accepted the offer. In many cases, consideration consists of making a monetary payment. In the purchase of a property example, consideration may be the down payment.

Although written contracts are easier to interpret and enforce, they are not the only contracts that can form a binding contract. Many legal systems also recognize verbal contracts. A verbal contract must contain the same elements with the only difference being that they are made orally instead of in writing.

Some contracts cannot form binding contracts. For example, contracts that require one of the parties to do something illegal are considered void and therefore are not binding on either party. Other contracts are voidable, meaning they are legally binding on one party, but may be voided by the other party. A contract entered into with a minor, for example, is voidable in many jurisdictions because minors do not have the legal capacity to contract. As a result, the adult is bound by the terms of the contract, but the minor has the option to void the contract or to adhere to the terms of the contract.

MyLawQuestions is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Leigia Rosales
By Leigia Rosales
Leigia Rosales is a former attorney turned freelance writer. With a law degree and a background in legal practice, she crafts compelling content that informs and engages readers. Her ability to understand complex topics and communicate them effectively makes her a valuable asset to any content creation team.
Discussion Comments
By madeline — On Mar 26, 2011

My son made a big mistake by signing a verbal agreement with a magazine company (Viking Magazine)over the phone who promised "millions of prizes and rewards". However, he never got the magazines he ordered and called to cancel because they were charging him almost $69 every month and withdrawing the money from his checking account.

He called them several times to cancel with no avail. We had to close his bank account and now they are harassing him via letters threatening him with collection agencies and bad credit reports. We have now found out that we are not alone. There are many others who have been scammed by this company. Does he not have the right to cancel a contract, which they said is a binding contract, at any time if we are not satisfied with the services rendered? We need advice. Thanks.

Leigia Rosales
Leigia Rosales
Leigia Rosales is a former attorney turned freelance writer. With a law degree and a background in legal practice, she...
Learn more
MyLawQuestions, in your inbox

Our latest articles, guides, and more, delivered daily.

MyLawQuestions, in your inbox

Our latest articles, guides, and more, delivered daily.