whether a contract is binding or non-binding may affect its validity. you may have noticed the words binding and non-binding often come up when researching legal documents, and might have wondered what the difference is between the two terms. whether a legal document is binding or non-binding is an important distinction to make, as it may affect whether that document is legally enforceable in court. generally, a contract is considered binding when it includes all of these elements, and doesn’t contain invalidating issues that could lead to things like undue influence, coercion, or duress.