Introduction:
Contracts and agreements are two legal documents that are commonly used in business transactions. While they are often used interchangeably, there are some key differences between the two. In this response, we will discuss the differences between contracts and agreements in detail.

What is a Contract?
A contract is a legally binding agreement between two or more parties that outlines the rights and obligations of each party. It is a formal document that is enforceable by law. Contracts are typically used in more complex and substantial business transactions. They are often written agreements, but they can also be oral or implied.

What is an Agreement?
An agreement, on the other hand, is a broader term that refers to any understanding or arrangement between two or more parties. It can be a formal or informal arrangement and does not necessarily have to be enforceable by law. Agreements can be written, oral, or even implied through the conduct of the parties involved.

Key Differences:
1. Enforceability: One of the key differences between contracts and agreements is their enforceability. Contracts are legally binding and can be enforced by law, whereas agreements may or may not be enforceable, depending on the circumstances.

2. Formality: Contracts are typically more formal than agreements. They often require certain formalities, such as being in writing and signed by the parties involved. Agreements, on the other hand, can be formal or informal and can be made orally or even through the conduct of the parties.

3. Complexity: Contracts are generally more complex and detailed than agreements. They often include specific terms and conditions, such as the scope of work, payment terms, and dispute resolution mechanisms. Agreements, on the other hand, can be simpler and may not require as much detail.

4. Legal Consequences: Since contracts are legally binding, there are legal consequences for breaching the terms of a contract. Parties can seek legal remedies, such as damages or specific performance, if the other party fails to fulfill their obligations. Agreements, on the other hand, may not have the same legal consequences for non-compliance.

5. Intention to Create Legal Relations: Contracts require an intention to create legal relations between the parties involved. This means that the parties must intend to be legally bound by the terms of the contract. Agreements, on the other hand, may or may not have this intention, depending on the circumstances.

Conclusion:
In summary, contracts and agreements are both used in business transactions, but there are some key differences between the two. Contracts are legally binding, formal, and enforceable by law, while agreements can be formal or informal and may or may not be legally enforceable. Contracts are generally more complex and detailed, while agreements can be simpler. It is important to understand these differences to ensure that the appropriate legal document is used in a given situation.