A contract is binding only if it contains valuable consideration. Essentially, consideration means that one party promises to give something valuable to the other party. It can be a monetary payment, an action, or anything else that the parties deem valuable. If the promise contained in the contract cannot be enforced by a court, it is usually because the contract does not contain the necessary elements, making it an unenforceable promise or a non-binding contract. Therefore, there must be a clear indication that the parties understand the terms of the contract and that they are willing to enter into such an agreement on the negotiated terms. What is a binding agreement? Basically, a binding agreement is a contract between two parties that can be legally enforced.3 min read The difference between binding and non-binding contracts is important to know so that you can be as well informed as possible when signing your next legal document. In short, whether or not a contract contains enforceable promises affects whether it is binding or not. Online agreements are unique in that users do not enter into the terms they must accept. However, with a combination of clarity and transparency, you can ensure that your online agreements remain legally binding. You may have noticed that words are binding and non-binding often appear when searching for legal documents, and you may have wondered what the difference is between the two terms.