Distinguish between Agreement and Contract.
Agreement
An Agreement is an extensive idea that incorporates any course of action
or comprehension between at least two gatherings about their privileges and
obligations as for each other. Such casual courses of action regularly assume
the type of "courteous fellows' understandings," where adherence to
the provisions of the understanding depends upon the respect of the gatherings
included as opposed to outside methods for authorization.
Contract
A contract is
a particular sort of understanding that meets certain necessities intended to
make lawfully restricting commitments between parties that are enforceable by
an official courtroom.
Comparison chart of
Agreement and Contract
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Agreement
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Contract
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Definition
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An arrangement
(usually informal) between two or more parties that is not enforceable by
law.
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A formal
arrangement between two or more party that, by its terms and elements, is
enforceable by law.
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Does it need to be
in writing?
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No.
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No, except for some
specific kinds of contracts, such as those involving land or which cannot be
completed within one year.
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Legal effect
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A contract is
legally binding and its terms may be enforceable in a court of law.
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