Contracts

What does it mean when a Delaware real estate contract is 'binding'?

AThe contract has been notarized
BThe contract creates enforceable obligations for both parties, meaning each party is legally required to perform✓ Correct
CThe contract cannot be amended for any reason
DThe property is removed from the market immediately

Explanation

A binding contract is one that is legally enforceable — both parties have fulfilled the formation requirements (offer, acceptance, consideration, capacity, lawful purpose, writing) and are obligated to perform or face legal remedies.

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