• Agreement: An agreement refers to a mutual understanding or arrangement between two or more parties regarding their rights and obligations. It may or may not be legally enforceable. Agreements can be informal and do not necessarily require specific legal formalities.

• Contract: A contract is a legally binding agreement between two or more parties that creates enforceable obligations. It typically requires specific elements such as offer, acceptance, consideration, intention to create legal relations, capacity, and certainty of terms. Contracts are enforceable by law, and parties can seek legal remedies for breaches.

In essence, while all contracts are agreements, not all agreements are contracts. The key difference lies in the enforceability and legal obligations associated with a contract compared to a more general agreement.