An Agreement can be defined as an acceptance of an offer given by one party to another. Every promise and set of promises that form any type of consideration for all the parties involved is called an agreement. Here, promise refers to the acceptance of an offer or proposal. The agreement comes into existence when an individual or an entity makes an offer or proposal to a second individual or entity, and the latter accepts that offer with all the required conditions
A Contract can be defined as an agreement that is enforced by law involving at least two parties, as such one party is entitled to some right and the other with some obligation. An agreement is said to be a contract when it is abided by the law. It means that legal obligations must be led by a contract.
Difference between Agreement and contract:
Agreement and Contract are often used together most of the time; however, in legality, they are two different things. A legal agreement can be formal, which means nothing needs to be witnessed or written down. On the other hand, a Contract is more formal and legally binding. Hence, both an Agreement and Contract represent specific arrangements between two or more parties. The main distinction lies in their flexibility and enforceability.