What is the difference between a Contract and an Agreement?

CONTRACT

A contract is an agreement between parties that is legally

enforceable. An agreement between two or more

competent parties in which an offer is made and

accepted, and each party benefits. The agreement can be

formal, informal, written, oral or just plain understood.

Some contracts are required to be in writing in order to be

enforced. An agreement between two or more parties

which creates obligations to do or not do the specific

things and that are the subject of that agreement.

Examples of a contract are a lease, a promissory note, or

a rental agreement.

Contracts are divided into express or implied. An express contract is one where the terms of the agreement are openly uttered and avowed at the time of making, as to pay a stated price for certain goods.

A valid contract must contain the ten valid elements which are:

· Offer and Acceptance

· Intention to Create Legal Relations

· Lawful Consideration

. Capacity of Parties

· Free Consent

. Lawful Object

· Writing and Registration

· Certainty

· Possibility of Performance

. Not Expressly Declared Void

AGREEMENT

An agreement is a meeting of the minds. An agreement

is made when two people reach an understanding

about a particular issue, including their obligations,

duties and rights. While agreement is sometimes used

to mean contract — a legally binding oral or written

agreement — it is actually a broader term, including

understandings that might not rise to the level of a

legally binding contract. The writing or document that

records the meeting of the minds of the parties. It is an

oral compact between two parties who join together for

a common purpose intending to change their rights

and duties.

An agreement is not always synonymous with a

contract because it might lack an essential element of

a contract, such as consideration.

1)      In any meeting of the minds, even without legal

obligation.

2)      In law, another name for a contract including all

the elements of a legal contract: offer, acceptance, and

consideration (payment or performance), based on

specific terms

DIFFERENCE BETWEEN CONTRACT AND AGREEMENT:

The basic difference between contract and agreement is that the

remedies for breach of contract and breach of agreement are way too

different. Contract becomes enforceable once three conditions of legally

binding agreement are met while agreement can be worked upon when

two minds meet at a certain point.

A gentlemen agreement is not enforceable by law whereas a contract can

be enforceable by law.

A contract requires agreement on the terms; consideration (usually but

not always money) and an intention by both parties to be legally bound to

each perform their respective promises. But an agreement may not be

intended to be legally binding on the parties.

A contract is a formal agreement which is legally binding, usually

created for business purposes, or to ensure the safety of one’s

assets.  Agreements are informally made with family and friends,

they are similar to promises.

Contracts involve a universal acceptance of the terms and the

stipulations are deemed possible to attain by all

parties. Agreements have universal acceptance, however there is

no guarantee of attainment by parties and it can be changed at

any time by either participant