Which is an example of a binding contract?

A signed lease for an apartment is a binding contract because it meets the essential elements required for a contract to be enforceable: mutual agreement, consideration, capacity, and a lawful purpose. When both parties sign the lease, they have created a legally binding document that outlines specific rights and responsibilities concerning the rental property. This contract is actionable and can be enforced in a court of law, meaning that if either party fails to uphold their end of the agreement, the other party can seek legal remedies.

In contrast, a promise to do something at a later date lacks the necessary details or formalities to constitute a binding agreement. Similarly, an informal agreement between friends does not usually meet the legal requirements for enforceability, as it often lacks the intent to create legal relations. Lastly, a verbal agreement with no witnesses suffers from challenges in proving the terms and existence of the agreement should any disputes arise. These other choices do not provide the legal security and enforceability that a signed lease does.