Final answer:
A binding contract between a buyer and seller must be in writing and signed by both parties to be legally enforceable. Notarization and third-party witnesses are not necessary for a contract to be binding. The legal enforcement of contracts is vital for secure business transactions and economic growth.
Step-by-step explanation:
In order to have a binding contract between the buyer and seller, it must be in writing and signed by both parties. This is essential because a contract is a legally enforceable agreement and a cornerstone of modern business practices. The written document should clearly outline the terms, conditions, rights, and obligations of each party. Having a document that is signed by the involved parties is a standard requirement for a contract to hold legal weight. Notarization, a performance bond, and third-party witness are all optional and context-dependent, and are not universally required for a contract to be binding.
Contracts and their enforcement are pivotal for functioning economic systems, giving individuals and firms the certainty needed to engage in transactions involving goods, services, or property. The legal system is fundamental in upholding such agreements, preventing breaches and ensuring remedies in case a party does not fulfill its obligations. Service contracts and warranties are examples of contractual agreements that provide additional assurances and obligations beyond the basic purchase agreement for products like cars, appliances, and houses.