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What is the difference between a contract and an agreement?

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Question added by Dana Adel , Sales Representative , Karmalite
Date Posted: 2015/07/30
Dave Diamon
by Dave Diamon , Contracts Manager , Upon Request

Hi Dana,

 

Speaking very generally, all contacts are agreements but not all agreements are contracts. If we agree to go for a walk we have an agreement to do something but you can change your mind and stay home. We don’t have a contract and you’re under no contractual obligation to walk with me. Contracts, on the other hand, are agreements that meet some formal requirements (generally offer, acceptance, and consideration), and that you and I agree will obligate us to do something. When we draft a contract we often refer to it as an “Agreement” within the document itself, but using the word Agreement is usually a stylistic choice and does not take away from the fact that it is a formal contract which requires us to do or to not do something. So, every contract starts with an agreement between us, but not every agreement between us becomes a contract that we have to abide by.

Mahmood Rawshan Ahamed
by Mahmood Rawshan Ahamed , Contracts Administrator , QD-SBG /Advanced Vision

Hi Dana ,

I do  agree with Dave , not all agreements are contract , contracts are terms and rules to perfom the scope if you agreed those terms and clauses and it will become your  obligations andi t  is your choice to agree on those terms .if you agreed it will become contract agreement between parties .

 

 

When a person  offers something to another person (promisee) and the proposal is accepted by the concerned person with equivalent consideration, this commitment is known as the agreement. When two or more than two persons agree upon the same thing in the same sense (i.e. Consensus ad idem), this identity of minds is agreement. The following are the types of agreement are as under:    Wagering Agreement    Void Agreement    Voidable Agreement    Implied Agreement    Express Agreement    Conditional Agreement    Illegal Agreement.

 

To be precise, a legally enforceable agreement for doing or not doing an act is known as a contract. A contract must contain these elements: Offer and Acceptance, Adequate and Unconditional Consideration, Free Consent, Capacity, Lawful object, Certainty, Intention of creating legal obligations, and the Agreement should not be declared void.The following are the major differences between agreement and contract:    Promises and commitments forming consideration for the parties to the same consent is known as an agreement. The agreement, which is legally enforceable is known as a contract.    The agreement is defined in section 2 (e) while a Contract is defined in section 2 (h) of the Indian Contract Act.    A Contract includes an agreement. Conversely, an agreement does not include a contract.    Generally, an agreements needs not to be given in writing, but the contracts are normally written and registered.    The agreement does not legally bound any party for the performance. In the Contract, the people are legally bound to perform their part.The contract may be oral or written. The major types of contract are as under:    Void Contract    Voidable Contract    Valid Contract    Unilateral Contract    Bilateral Contract    Express Contract    Tacit Contract    Contingent Contract    Implied Contract    Executed Contract    Executory Contract    Quasi Contract etc.

The following are the major differences between agreement and contract:    Promises and commitments forming consideration for the parties to the same consent is known as an agreement. The agreement, which is legally enforceable is known as a contract.    The agreement is defined in section 2 (e) while a Contract is defined in section 2 (h) of the Indian Contract Act.    A Contract includes an agreement. Conversely, an agreement does not include a contract.    Generally, an agreements needs not to be given in writing, but the contracts are normally written and registered.    The agreement does not legally bound any party for the performance. In the Contract, the people are legally bound to perform their part.

Contract means to do the work in specific terms with consideration with mutual understanding. Agreement means to do the work and service with legal understanding.. both are same but in legal terms we are called Agreement.

Muhammad Moeen Bhatti
by Muhammad Moeen Bhatti , Cluster Incharge , Premier DLC - A project of Beaconhouse Group

A contract is a legally binding agreement between two or more entities, but a legal agreement is not always a contract. Any agreement is considered to be legally binding and becomes a contract when three conditions are met. The conditions are Offer and Acceptance, intention to create legal relation and consideration. If any one of these conditions is not met then the contract is not legally binding and it cannot be enforced on the other party.

Tembele Ally
by Tembele Ally , Principal commercial Officer , Tanzania Airports Authority

Contract is a signed  legal binding agreement between two parties while agreement can not neccessarly be signed  between  two parties 

عاطف أحمد على
by عاطف أحمد على , مدير الإدارة الهندسية و التشغيل , غرب و وسط الدلتا للنقل و السياحة

an agreement is an intial step or one step to gona making a deal but contract is a final signed document binding for all parties 

A contract is an agreement but an agreement is not necessarily a contract because a contract, unlike an agreement has legal obligations arising therefrom. 

egyptlawfirm مكتب محاماة
by egyptlawfirm مكتب محاماة , محامي {نائب مدير الشئون القانونيه} , شركة المصريين للتمويل العقارى

The distinction between the agreement and the contract is not important. Both agree to have a legal effect

الصادق  صالح
by الصادق صالح , مساعد مدير مالي , نستله ووترز - السعودية

 agreement is with two party we are able two change in any were  

 

 

contract its fixed we are not able to change like between company and customers  

رامي شاهين
by رامي شاهين , محامي استئناف , ترانسكارجو

The contract is alegally binding agreement , but alegal agreement is not always acontract. Any greement is considered legally binding and becomes acontract when three conditions are ment The contract is every agreement intended to produce alegal effect is ratified When the offer meets the acceptance , the contract is concluded

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