What makes a contract legally binding?

[Michael L.]

If 2 business owners create a contract, are their signatures enough to make it a binding agreement or would getting the contract notarized be a wiser decision? Thanks for all feedback...

[Manny Vasquez]

A contract is legally binding when it has the following elements:

1.Consideration - An exchange of value between the parties. If one party doesn't provide consideration, the other party can't enforce the contract.

2. Offer and acceptance - The offer must be lawful, and the acceptance must be expressed, either orally or in writing.

3. Capacity - The parties must intend to engage in a legal relationship and be legally bound by it. This intention can be expressed by the parties or implied by their actions.

I would say that the signatures of both parties would suffice.  However, as an added step of security and a "just in case", I would get them notarized.  If its a few documents, I don't see why a notary would charge you more than $150.  If you are worried of something happening down the road, get a notary for peace of mind.