Georgia Assessments for the Certification of Educators GACE Practice Test

For an agreement to be considered legally binding, what must be included?

1. An agreement signed and dated by both parties

2. An agreement signed and dated by both parties and a witness

3. An agreement signed by both parties and witnessed by a third party

4. An agreement signed and dated by one party and one witness

The correct answer is: An agreement signed and dated by both parties

For an agreement to be considered legally binding, it is essential that it contains the consent of the parties involved, which is typically demonstrated through signatures. The agreement must express an intention to create a legal relationship and include essential terms that are clear enough for the parties to understand their obligations. The presence of signatures from both parties signifies that they have agreed to the terms laid out in the document. This mutual consent is a fundamental principle in contract law, ensuring that both parties acknowledge and accept the terms of the agreement. While witnesses may serve to support the authenticity of the agreement, their presence is not necessary for the agreement to be legally binding in many jurisdictions, including Georgia. Therefore, having an agreement signed and dated by both parties is sufficient for the contract to be enforceable. This makes it clear that both parties are aware of, and have accepted, the terms they are entering into.