What Is Considered A Binding Contract?

Contract agreement Dan Burke

Contracts can be difficult to understand when you first read through. They are often full of legal terminology, and each state has different requirements for what makes a contract legally binding. All of these factors can quickly make it seem impossible to tell if a contract is binding or not. 

With Daniel Burke Attorney At Law, you can trust our expertise when it comes to legally binding contracts. Here is everything you need to know about binding contracts.

What Is A Legally Binding Contract?

A legally binding contract is an agreement made between two or more parties. It’s enforceable by law and is credible under state and federal contract laws. Because the contract is legally binding, all parties have to follow the terms of the contract.

Legally binding contracts can be drafted in several ways. They are usually created with the involvement of all parties drafting the contract together. The contracts are often in writing, with the terms and conditions clearly outlined. 

Contracts don’t have to be in writing to be considered legally binding. Other forms of legally binding contracts include: 

  • Emails
  • Faxes 
  • Phone calls


In Texas, rulings in the past have found emails are not always legally binding, but those cases had specific circumstances.

What Are Some Elements of A Binding Contract?

For a contract to be considered legally binding, it must have two elements: 

  • An agreement
  • A consideration


To increase the legality of a contract other elements can be included.

Such as: 

  • An offer
  • Obligations
  • Terms
  • Conditions
  • Breach of contract
  • Liability
  • Performance


There are other elements outside of the contract that must be met for it to be considered binding. All parties must be at least 18 and show competence when the contract is agreed upon. The contract is non-binding if anyone was under the influence of drugs or alcohol while the contract was drafted or signed.

If any party is not familiar with legal terminology or it wasn’t made clear to them what they were agreeing to, then the contract is non-binding. Lastly, a contract created under force isn’t considered legally binding. Some contracts must also be put in writing to be considered legally binding, such as contracts for the sale of real estate. 

Can I Dispute a Contract?

If any party thinks the contract has been broken in any way, they can dispute the legality of the arrangement. The party will have to bring the case to court where a judge will decide if the contract has been breached. The process is lengthy and can be expensive. Only bring contract disputes to court if you feel you have to.

How Do I Know If My Contract is Valid in Texas?

Every state has varying contract laws. This can make it hard to tell if your contract is legally binding or not. Here are the requirements for a valid written contract in Texas.

The contract must include:

  • An offer.
  • Consideration.
  • An acceptance in compliance with the terms of the offer.
  • A meeting of the minds.
  • Each party’s consent to the terms.
  • Execution and delivery of the contract with the intent that it be mutual and binding.


If you still have questions about contracts or need help with a contract, then contact Daniel Burke Attorney At Law today. We specialize in small business law, probate law, and real estate law. We can help you with your contracts, deeds, leases, and more.

If you are in San Antonio, contact Daniel Burke Attorney At Law today and schedule your free consultation.


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