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Difference Between Agreement And Contract

What is Agreement?

It can be easily defined as Offer by an individual person and acceptance of that offer by another individual person. An Agreement is a very large term and much complex in nature. Agreements only give rise to community and marital obligations but when an Agreement is enforceable by law, it is called as a Contract. Agreements only show the consideration of doing something by one person to another.

What is Contract?

It is an Agreement that is executable by law. The Contract is of less scope when compared to the agreement. There are some conditions for an agreement to became into Contract, They are as follows
• There should be two or more than two parties.
• There should be free approval concerning acceptance of the offer.
• The agreement should be executable by the law.
• There should be conviction concerning the details of the contract, etc.
• The agreement should not hold any unlawful things.

COMPARISON TABLE Agreement VS Contract

It is a general understanding between two groups which obtained from the offer made by a person and acceptance of another person. It can be define as an Agreement which can be executable by law. All the agreements which required legal obligation can become contracts.


An Agreement is entirely a social or marital obligation. The contract based on legal obligation of the performance of an activities.

Nature and Scope

Agreements are larger in scope and have complex nature. The contract is very less in scope and has not complex nature.


All Agreements are not considered in contracts because having no legal obligation. All Contracts considered in Agreements. So to form a contract, there should be an agreement among the groups.
Writing and Registration
Agreements are usually verbal and there is no need for registration, but some agreements are also in writing form. Contracts are usually in written form and registered because verbal contracts are difficult to prove on legal grounds.


The requirement for agreement, the parties’ wants only come to a common understanding as to their relation civil rights and tasks, what is frequently termed a “meeting of the minds.” But the requirements for making of a contract are more accurate and moderately stricter. Contracts contain the following important elements:

  • Offer and Acceptance
  • Mutual Consent
  • Consideration
  • Competence
  • Legal Purpose

There are many different kinds of agreements and contracts according to the rules that lay down by the country law act. Every Agreement and Contract should not disobey any of the legal laws of the country and should not be twisted for unlawful purposes. The agreements and contracts which are considered as illegal and the people who are involved in those can be punished by the law and order forces according to the law of the country.


Updated: April 12, 2021 — 8:23 pm
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