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DIFFERENCE BETWEEN CONTRACT AND AGREEMENT

What is contract?
Any agreement or declaration between two or more parties and the agreement must be enforceable by law is called contract. In valid contract, both parties who involve in the contract are legally bound to fulfill his obligations or promises which are within the contract.
                           Contract = Agreement + Enforceability
Example: Mr. Peter promises to sell his car to Mr. Harry for $20,000. Mr. Harry agrees to buy. It is a valid contract.
What is agreement?
Every promise, mutual decision or arrangement are an agreement if it forms a consideration for both parties.
                             Agreement = Offer and Acceptance
Example: The decision between two friends to share the rent in an apartment.

DIFFERENCE BETWEEN CONTRACT AND AGREEMENT

 Agreement  Contract
1. DefinitionEvery promise, mutual decision 
or arrangement are an 
agreement if it forms a 
consideration for both parties.		Any agreement or declaration 
between two or more parties 
and the agreement must be 
enforceable by law is called 
contract.
2. FormationAn offer and its acceptance 
make an agreement.		An agreement and its 
enforceability make a contract.
3. Legal ObligationsIt may or may not create legal 
obligations.		It necessarily creates legal 
obligation.
4. ScopeAll agreements are not contract.All Contracts are contract.
5. BindingAll agreements are not legally 
binding.		All valid contracts are legally 
binding.
6. In WritingNot necessarily.Contracts are usually in writing 
and registered.
7. SimilaritiesProposal, consideration, offer 
and acceptance.		Proposal, consideration, offer
and acceptance.
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