< b="" />Agreement vs Contract< />
< b="" />Agreement< />
An agreement is a mutual understanding or arrangement between two or more parties about their rights and obligations. It is based on a meeting of minds between the parties involved. An agreement may or may not be legally binding.
- < b="" />Voluntary< />: Agreements are entered into voluntarily by the parties involved without any external pressure.
- < b="" />Informal< />: Agreements can be informal and do not necessarily have to be in writing.
- < b="" />Not legally binding< />: While an agreement is a promise or commitment between parties, it may not always be legally enforceable.
< b="" />Contract< />
A contract, on the other hand, is a legally binding agreement between two or more parties that creates obligations that are enforceable by law. A contract requires an offer, acceptance, consideration, legal capacity, and legality of purpose.
- < b="" />Legally enforceable< />: A contract is a legally binding agreement that can be enforced in a court of law if one party fails to fulfill their obligations.
- < b="" />Formal< />: Contracts are often formal agreements that are typically in writing to ensure clarity and avoid misunderstandings.
- < b="" />Requires elements< />: For a contract to be valid, it must contain all the essential elements such as offer, acceptance, consideration, legal capacity, and legality of purpose.