Difference between Agreement and Contract

Question

Accepted Answer

An agreement is a mutual understanding between two or more parties, while a contract is a legally binding agreement enforceable by law.

An agreement is a broader term that refers to a mutual understanding between parties, whether it is written or verbal.
A contract, on the other hand, is a specific type of agreement that is legally enforceable.
For an agreement to become a contract, it must meet certain legal requirements such as offer, acceptance, consideration, and intention to create legal relations.
Agreements can be informal and may not always involve legal consequences, while contracts are formal and have legal obligations.
Examples of agreements include a handshake deal between friends, a rental agreement, or a partnership agreement.
Examples of contracts include employment contracts, sales contracts, or lease agreements.

Accepted Answer

Both represent specific arrangements between two or more parties

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