Distinguish between Agreement and Contract.

October 24, 2019


     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

Agreement
Contract

Definition
An arrangement (usually informal) between two or more parties that is not enforceable by law.
A formal arrangement between two or more party that, by its terms and elements, is enforceable by law.

Does it need to be in writing?

No.
No, except for some specific kinds of contracts, such as those involving land or which cannot be completed within one year.

Legal effect

An agreement that lacks any of the required elements of a contract has no legal effect.
A contract is legally binding and its terms may be enforceable in a court of law.

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