An agreement is not binding when all parties involved have not reached a mutual understanding and acceptance of the terms. In other words, if any of the parties involved do not agree to the terms set forth in the agreement, it cannot be considered binding.

Additionally, an agreement may not be binding if it is not legally enforceable. For example, an agreement that goes against the law or public policy cannot be considered binding. This includes agreements that involve illegal activities, discrimination, or waivers of legal rights.

It`s important to note that even if an agreement is legally enforceable, it may not be binding if it was signed under duress or coercion. In situations where one party was forced or threatened to sign the agreement, it may not be considered binding in a court of law.

Another circumstance where an agreement may not be binding is if the terms are unclear or ambiguous. If there is any confusion or disagreement about the interpretation of the terms, it can lead to a breach of the agreement and render it unenforceable.

Lastly, an agreement may not be binding if one or more of the parties involved lacks the legal capacity to enter into the agreement. For example, minors do not have the legal capacity to sign contracts, and agreements made with individuals who lack mental capacity may not be binding.

In conclusion, an agreement is not binding when all parties involved have not reached a mutual understanding and acceptance of the terms, it is not legally enforceable, it was signed under duress or coercion, the terms are unclear or ambiguous, or one or more parties involved lack the legal capacity to enter into the agreement. As a result, it is essential to ensure that all parties involved understand and agree to the terms of an agreement before signing.