Meaning of binding as related to English grammar

[Semga]

Business English Lesson, Advanced Level

ESL/EFL Test #130 "Contracts and agreements", question 1

A contract is a ......... agreement that is reached between two individuals or parties.

(a) bound
(b) bounded
(c) binding
(d) boundary

Business English Lesson, Advanced Level

ESL/EFL Test #130 "Contracts and agreements", answer 1

A contract is a binding agreement that is reached between two individuals or parties.

Correct answer: (c) binding
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i want to know the meaning of binding as related to English grammar?

Semga

[Mister Micawber]

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I know of none specific to grammar.
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Native English teacher at Mister Micawber's