at its most basic, a binding agreement is a contract between two parties that can be legally enforced. a contract is an agreement between multiple parties that is legally binding. when there is a dispute related to the fundamentals of a contract or there has been a breach of contract, the parties may need to resolve the case in court. there are several elements that courts will consider to determine if an agreement is legally binding and if one of the parties has breached the agreement. in addition to an agreement and consideration, there are a variety of provisions that will be included in a legal contract: depending on the nature of the contract, agreements can either be written or verbal. always reference state laws when drafting your contract, to make sure that it will be legally binding. in every contract, an offer must be made from one party to another.