These five elements are also the steps towards a legally binding treaty. A legally binding agreement is any contract with agreed terms that involve necessary or prohibited acts. Traditionally, contracts organize the provision of goods and services for payment, although they may also reflect exchanges that act as co-benefits or goods. Both parties must have jurisdiction to conclude the agreement. They cannot be under the influence of alcohol or drugs, have an unhealthy mind or be under the age of 18. To conclude the contract, they must have legal consequences.