Common legal phrase indicating that an agreement has been consciously made, and certain actions are now either required or prohibited. For example, a lease for an apartment is legally binding, because upon signing the document, the lessor and the lessee are agreeing to a number of conditions. The lessor typically agrees to provide the apartment in a certain condition for a certain length of time, and the lessee typically agrees to pay an agreed upon rent and refrain from certain destructive behaviors. The other requirement for an agreement or contract to be considered legally binding is consideration - both parties must knowingly understand what they are agreeing to. If a person is forced, tricked, or coerced into entering into an agreement, it typically is not considered legally binding.