In the legal field, a contract is a legally binding agreement between two or more parties to do, or to refrain from doing, a particular thing in exchange for something of value. The elements required for the agreement to be a legally enforceable contract are offer, acceptance, mutual assent (also known as “meeting of the minds”), consideration, capacity and legality.
A contract or agreement is a legally enforceable promise. An enforceable promise is one that a court can order the promisor to fulfill (by paying damages or doing work), if the promisor does not do what he promised. Thus, an agreement or contract does not have to be signed by both parties, but it does have to be signed by at least one party — otherwise, there is no enforceable promise.
Other opinion confirms that contracts and agreements need to be signed by both parties because a contract must have the following elements:
- Offer
- Acceptance
- Consideration
- Legality
The agreement must, therefore, be signed by both parties as the signature would serves as proof that both parties are aware and agree to the terms, conditions, and rules of the agreement. If one party refuses to sign the agreement, it is not legally binding.
However, it is a good idea to have both parties sign the contract. A signature is a mark of authenticity and agreement that shows that the contract was read and understood, and that both parties agree to the terms. It’s possible for verbal contracts to be legally recognised without signatures, but it is more difficult to prove in court that both parties understand and consent.