Key Differences between Agreement and Contract

• An agreement may or may not be legally binding, whereas a contract is always legally binding.
• Agreements can be formed orally or in writing, while contracts are usually in written form.
• Essential elements for an agreement include offer and acceptance, whereas a contract requires offer, acceptance, consideration, and an intention to create legal relations.
• Contracts are generally more enforceable than agreements.
• Contracts impose more legal obligations on the parties involved compared to agreements.
• The intention to create legal relations is not always required for an agreement but is necessary for a contract.
• Agreements tend to be less formal in nature, while contracts have a higher degree of formality.
• Agreements are commonly found in informal settings, whereas contracts are prevalent in formal or professional contexts