What is the term for an agreement that is legally binding?

A legally binding agreement is referred to as a valid contract. For a contract to be considered valid, it must meet certain legal criteria, which typically include an offer, acceptance, consideration, mutual consent, and a lawful purpose. When all these elements are present, the contract holds enforceable power in a court of law, meaning that both parties are obligated to fulfill their obligations as outlined in the agreement.

In contrast, an invalid contract lacks the necessary elements to be enforceable. A void contract is one that is not legally binding from the outset, often due to a lack of capacity to contract or an unlawful object. A fraudulent contract is one that involves deception or misrepresentation, making it voidable at the option of the deceive party but not valid in its entirety. Understanding these distinctions is crucial in the realm of legal agreements, especially in funeral service education, where binding contracts can govern significant and sensitive arrangements.