Which term means a legally binding agreement between two or more persons?

Which term means a legally binding agreement between two or more persons?

• A. Memorandum
• B. Contract
• C. Deed
• D. Agreement

Answer: (B)

Understanding what creates a legally binding agreement is about recognizing a contract. A contract is a set of promises enforceable by law, formed when there is an offer, acceptance, consideration, and an intention to create legal relations, with the parties having capacity and the subject matter being lawful. When these elements are present, the agreement is binding and can be enforced in court. A memorandum, while it may document an understanding, does not by itself create enforceable obligations. A deed is a formal instrument with specific formalities and is enforceable, but it’s not the general term for any binding agreement. An agreement is any understanding between parties, which may be informal and not legally binding unless it meets the criteria of a contract. Therefore, the term that specifically denotes a legally binding agreement between two or more persons is contract.

Understanding what creates a legally binding agreement is about recognizing a contract. A contract is a set of promises enforceable by law, formed when there is an offer, acceptance, consideration, and an intention to create legal relations, with the parties having capacity and the subject matter being lawful. When these elements are present, the agreement is binding and can be enforced in court. A memorandum, while it may document an understanding, does not by itself create enforceable obligations. A deed is a formal instrument with specific formalities and is enforceable, but it’s not the general term for any binding agreement. An agreement is any understanding between parties, which may be informal and not legally binding unless it meets the criteria of a contract. Therefore, the term that specifically denotes a legally binding agreement between two or more persons is contract.