Do Binding Contracts Have to Be Notarized?

Elements

• To be binding and enforceable, contracts require specific elements. The contracting parties must be competent adults, this means that individuals under 18 years old cannot be legally bound. There must be an offer, an acceptance and something to be exchanged, which is referred to as "consideration." Both parties must mutually assent to being bound by the contract's terms.
  
  

Oral Contracts

• Oral contracts have been recognized as long a contract law itself, and obviously, these contracts do not require notarization. Oral contracts are legally binding, assuming the subject matter is appropriate and all the elements of a binding contract are present. For example, if an individual/promisor orally promises to provide a place for another individual/promisee to live, but the promisor backs out, the promisee can sue for breach of contract. Often, a promisee can prove breach by showing she relied on the promise to her detriment.
  
  

Written Contracts

• Certain types of contracts must be in writing. This does not mean, however, that these contracts must be notarized. Pursuant to the statute of frauds, contracts for marriage, contracts for the sale of property, contracts for labor or services that will take in excess of one year to complete and contracts for an amount of money in excess of that prescribed in a state's contract laws must be in writing. Neither contracts that must be in writing as dictated by the statute of frauds, nor other types of written contracts, require notarization to be valid or binding.
  
  

Notarization

• Although notarization is not required for a written contract to be binding, it is wise to have contracts notarized, particularly where large sums of money are concerned. Notarization provides documentation that the parties did indeed agree to the contract by signing it. Notarization makes it difficult for a party seeking to rescind the contract to assert she did not sign it.