Contract: According to Section 2(h) of the Contract Act, 1872, "An Agreement is enforceable by law is a contract ".

A contract has two components:

1.An agreement 

2.Enforceable by law

Agreement: According to Section 2(e) of the Contract Act, 1872, " Every promise and set of promises forming consideration for each other is an agreement.".

An agreement has two things:

1.Promise and set of promises 

2.Consideration 

Differences between agreement and contract are:

1.All contracts are agreement but all agreements are not contract.

2.In the case of contract, it is enforceable by the court of law but agreement is not.

3.In contract consideration is must.On the other hand, in agreement consideration is not compulsory. 

4.For breaking contract, the aggrieved party gets compensation but for breaking agreement there is no required of compensation.