Okuzeka
Contract & Commercial Law vocabulary · Forming & Drafting Contracts

Binding

Meaning in contract & commercial law, with examples

/ˈbaɪndɪŋ/adjectiveCore term

In contract & commercial law, binding means: Having legal force, so that the parties must do what they have agreed and can be held responsible if they do not.

In Turkish: bağlayıcı, hukuken bağlayıcı

How it is used

Mostly used in 'legally binding' and 'binding on the parties'. Drafters state which parts of a document are binding; in a letter of intent, for example, often only the confidentiality and exclusivity sections are. The opposite is 'non-binding'.

Example sentences

  1. This term sheet is not legally binding, except for clause 8 on confidentiality.

  2. The arbitrator's decision is final and binding on both parties.

Common collocations

  • legally binding
  • binding on the parties
  • final and binding
  • non-binding
  • binding agreement
  • enforceableAble to be made effective through a court or tribunal, so that a party can be forced to comply or to pay compensation.
  • contractA legally binding agreement between two or more parties in which each side promises to do, or not to do, certain things.
  • letter of intentA document that records the parties' intention to make a deal and its main points before the final contract is negotiated and signed.
  • voidHaving no legal effect at all from the start, so that the contract or clause is treated as if it never existed.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Forming & Drafting Contracts

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This page explains English vocabulary for learners. It is not legal advice.