Contracts Are Binding

A contract is binding upon all its parties regardless of its form. The binding nature of contracts can be regarded as the cornerstone of contract law and of the entire judicial system.

The party making the offer is bound by the offer as soon as the offer has been received by the recipient. The same rule applies to the acceptance of the offer. If the acceptance is conditional, i.e. the offer is not accepted in its original form, the conditional acceptance is regarded as a new offer.

A contract can be effective until further notice or for a fixed term. A contract that is effective until further notice remains effective until a party terminates the contract. A notice period for termination should be defined in the contract. A fixed-term contract is effective until the end of its term. A contract can also expire when both parties have fulfilled their obligations under the contract. The contract may also contain provisions that continue to be binding despite the termination of the contract, such as an obligation of confidentiality, either imposed by an express contractual term or based on the nature and purpose of the terms.

If one of the contracting parties fails to fulfill the contract, the court and authorities may enforce the performance of the contract. Circumstances may change during the contract's lifetime, but this does not usually affect the contract's validity. Changes in circumstances can also be foreseen in the contract terms. In all cases, a party to the contract cannot be forced to fulfill the contract or forcing performance may not be appropriate. In these cases, the defaulting party can be held liable for damages for breach of contract.

Contracts cannot be altered unilaterally, but the parties may agree in the contract conditions permitting changes to the contract.