A contract becomes legally binding when it meets certain requirements, which vary depending on the jurisdiction but typically include:
1. *Offer and acceptance*: One party makes an offer, and the other party accepts the terms.
2. *Intention to be bound*: Both parties intend to enter into a legally binding agreement.
3. *Consideration*: Both parties provide something of value, such as money or services.
4. *Capacity to contract*: Both parties have the legal capacity to enter into a contract (e.g., they are of legal age and of sound mind).
5. *Free consent*: Both parties agree to the terms without coercion or undue influence.
6. *Legality of object*: The purpose of the contract is not illegal or against public policy.
7. *Certainty*: The terms of the contract are clear and specific.
8. *Signature*: The contract is signed by both parties (although some contracts can be binding without signatures, like oral contracts).
Once these elements are present, the contract becomes legally binding, and both parties are obligated to fulfill their promises. If one party fails to perform, the other party can seek legal remedies, such as damages or specific performance.