Introduction:
Agreement and contract are two terms that are often used interchangeably. However, there is a difference between the two terms. All contracts are agreement, but all agreements are not contract. In this response, we will explain the difference between agreement and contract.

Agreement:
An agreement is a mutual understanding between two or more parties. It is a meeting of the minds where parties agree to the terms and conditions of a particular transaction. An agreement can be oral or written and does not necessarily have to be legally binding.

Contract:
A contract is a legally binding agreement between two or more parties. It involves an offer, acceptance, consideration, and an intention to create legal relations. A contract can be written or oral, but it must meet certain legal requirements to be enforceable.

Difference:
The main difference between an agreement and a contract is that a contract is legally binding, while an agreement is not necessarily legally binding. A contract requires all the essential elements to be present and must meet certain legal requirements to be enforceable. On the other hand, an agreement does not need to meet these legal requirements and is not legally enforceable.

Examples:
To illustrate the difference between agreement and contract, consider the following examples:
- Two friends agree to meet for dinner on Friday. This is an agreement but not a contract because it is not legally binding.
- A company offers to buy goods from another company and sends a purchase order. The other company accepts and sends an invoice. This exchange creates a legally binding contract.

Conclusion:
In conclusion, all contracts are agreement, but all agreements are not contract. An agreement is a mutual understanding between two or more parties, while a contract is a legally binding agreement that meets certain legal requirements. It is important to understand the difference between the two terms to avoid confusion and ensure that your business transactions are legally enforceable.