S.No
|
BASIS FOR
COMPARISON
|
AGREEMENT
|
CONTRACT
|
1
|
DEFINITION
|
When a proposal is accepted by the person to whom it is
made, with requisite consideration, it is an agreement
|
A contract is an agreement which is legally
enforceable.
|
2
|
BASIC
DIFFERENCE
|
Every Agreement is not a contract.
|
Every Contract is an Agreement.
|
3
|
ENFORCE ABILITY
|
An Agreement is not enforceable by Law.
|
A contract is enforceable by Law.
|
4
|
INGREDIENTS
|
The agreement is itself an ingredient of a Contract and has no
ingredients of its own as such.
|
A Contract has seven ingredients.
1. Agreement
2. Legal
Purpose
3. Lawful
Consideration
4. Capacity
to Contract
5. Consent
to Contract
6. Lawful
Object
|
5
|
FORMALITY
|
An agreement is an informal document.
|
A Contract is a formal document.
|
6
|
TYPE
|
An agreement could be verbal or written.
|
A Contract has to be in writing.
|
7
|
SCOPE
|
Wide
|
Narrow
|
