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Contract Basics

Is My Contract Legally Binding? A Six-Point Check

By FixMyContractLast updated Oct 2, 20264 min read

Short answer: In common-law countries such as the US, UK, Australia and Canada, a contract is generally binding when six things are present: an offer, acceptance of that offer, consideration (something of value on each side), an intention to be legally bound, parties with capacity to contract, and terms clear enough to enforce. A signature helps prove agreement but is not always required — and a signed document can still be partly or wholly unenforceable.

The six-point check

  1. Offer — a clear proposal of terms, not just an invitation to talk.
  2. Acceptance — agreement to those terms. A reply that changes the terms is usually a counter-offer, not acceptance.
  3. Consideration — each side gives or promises something: money, work, goods, a promise not to do something.
  4. Intention to be bound — business deals are presumed to be meant seriously; family and social arrangements often are not.
  5. Capacity — for example, minors and people who could not understand the deal may be able to avoid it.
  6. Certainty — the key terms (who, what, price, when) can be worked out. "We'll agree the price later" can leave nothing to enforce.

What can make a signed contract unenforceable

  • Missing formalities — some contracts must be in writing or signed in a particular way (see is a verbal contract binding).
  • Illegality or public policy — a term that requires something unlawful is not enforced.
  • Misrepresentation, duress or undue influence — if you were misled or pressured into signing, the contract may be set aside.
  • Unfair terms in consumer and small business contracts — some laws void unfair standard terms (see unfair contract terms).
  • Mistake — in narrow cases, a shared fundamental mistake can undo a contract.

Often only one clause fails and the rest of the contract stands — that is what a severability clause is for. See what makes a contract void for the difference between void and voidable.

Signatures, emails and clicks

Electronic signatures and click-to-accept are generally valid in all four countries (for example, the US E-SIGN Act and the UK Electronic Communications Act 2000 framework), with exceptions for some documents such as certain land deeds and wills.

Where FixMyContract fits

If you are unsure what a contract commits you to, you can upload it and read the clauses that matter in plain English, with the contract's own words beside each point where they can be matched. It flags clauses that work against you; it does not decide whether a contract is enforceable in your situation.

This is general information, not legal advice. Enforceability depends on the facts and the law where you are; for a specific question, talk to a licensed lawyer.

Sources

All links checked 2 October 2026.

  1. Contract — elements (Legal Information Institute, Cornell) — https://www.law.cornell.edu/wex/contract
  2. Electronic Signatures in Global and National Commerce Act, 15 U.S.C. §7001 (Cornell LII) — https://www.law.cornell.edu/uscode/text/15/7001
  3. Electronic Communications Act 2000, s.7 (legislation.gov.uk) — https://www.legislation.gov.uk/ukpga/2000/7/section/7
  4. Law Commission, Electronic execution of documents (2019) — https://lawcom.gov.uk/project/electronic-execution-of-documents/

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