Introduction:
Contracts and agreements are terms that are often used interchangeably, but they have distinct differences. While all contracts are agreements, not all agreements can be considered contracts. In this discussion, we will delve into the statement "All contracts are agreements but all agreements are not contracts" and provide a detailed explanation.

Understanding Agreements:
An agreement is a mutual understanding or arrangement between two or more parties regarding a specific matter. It can be oral or in writing and does not necessarily have to be legally enforceable. Agreements are based on the consent of the parties involved and are often created to establish relationships, resolve disputes, or outline expectations.

Characteristics of Agreements:
1. Voluntary: Agreements are formed through the free will and consent of the parties involved.
2. Informal: Agreements can be informal and don't require specific formats or legal jargon.
3. Flexibility: Agreements can be modified or terminated by mutual agreement.
4. Lack of Legal Consequences: Agreements may not have legal consequences if breached.

Understanding Contracts:
A contract, on the other hand, is a legally binding agreement that is enforceable by law. It requires certain elements to be present for it to be considered a valid contract. These elements include an offer, acceptance, consideration, legal capacity, and legality of purpose. Contracts serve as legally recognized agreements that provide remedies in case of breach.

Characteristics of Contracts:
1. Legally Binding: Contracts create legal obligations and are enforceable by law.
2. Formality: Contracts often require specific formats, written documentation, and legal terminology.
3. Consideration: Contracts involve an exchange of something of value between the parties.
4. Legal Consequences: Breaching a contract can result in legal remedies or damages.

Difference between Agreements and Contracts:
While all contracts are agreements, not all agreements can be considered contracts. The key points of difference include:
1. Legal Enforceability: Agreements may lack the necessary elements to be legally enforceable, while contracts are intended to have legal consequences.
2. Formality: Agreements can be informal and don't necessarily require specific formats, whereas contracts often require formalities such as written documentation.
3. Consideration: Contracts involve an exchange of something valuable (consideration), while agreements may not require consideration.
4. Legal Remedies: Contracts provide legal remedies in case of breach, while agreements may not have legal consequences if breached.

Conclusion:
In conclusion, the statement "All contracts are agreements but all agreements are not contracts" holds true. While all contracts are based on agreements, not all agreements meet the legal requirements to be classified as contracts. Contracts have additional elements, formality, and legal consequences that distinguish them from mere agreements. Understanding the distinctions between agreements and contracts is crucial in legal and business contexts to ensure proper enforcement and protection of rights.