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ARTICLE · 14 FEBRUARY 2024

When is an agreement legally binding?

Prosper Law
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The key elements that make a contract legally binding in Australia.

AustraliaCorporate/Commercial Law
Farah Motley
Farah Motley
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When is an agreement legally binding?

For an agreement to be legally binding, it must meet certain criteria. Australian contract law requires that there is an offer, acceptance, an intention to create legal relations and consideration. There are also a few more criteria that need to be present.

In Australia, common law and statutory provisions govern contracts. For example, the Australian Consumer Law (ACL). Knowing what makes an agreement binding is crucial, whether it's a simple agreement or a complex business deal.

In this article, our contract lawyer will explore the key elements that make a contract legally binding in Australia.

Offer and Acceptance

The first element of a binding contract is an offer.

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