An agreement is an expansive concept that includes any arrangement or understanding between two or more parties about their rights and responsibilities with respect to one another. Such informal arrangements often take on the form of “gentlemen’s agreements,” where adherence to the terms of the agreement relies upon the honor of the parties involved rather than exterior means of enforcement.
A contract is a specific type of agreement that meets certain requirements designed to create legally binding obligations between parties that are enforceable by a court of law.
