Introduction
Contracts and agreements are essential in the business world. They are both crucial in any legal transaction, but there is a difference between the two. All contracts are agreements, but not all agreements are contracts.

What is a contract?
A contract is a legally binding agreement between two or more parties that involves the exchange of goods or services. It is a written or oral agreement that outlines the terms and conditions that each party must fulfill. A contract can be enforceable by law, which means that if any party breaches the agreement, they could be held liable for damages.

What is an agreement?
An agreement is a mutual understanding between two or more parties on a specific issue. It can be a verbal or written agreement that outlines the terms and conditions that each party must fulfill. However, an agreement is not necessarily enforceable by law, which means that if any party breaches the agreement, they may not be held legally liable for damages.

Differences between contracts and agreements
The main differences between contracts and agreements are:

- Contracts are legally binding, whereas agreements may not be enforceable by law.
- A contract is a specific type of agreement that involves an exchange of goods or services.
- To be legally binding, a contract must have certain components such as offer, acceptance, consideration, and intention to create legal relations. An agreement may not require these elements.
- A contract can be either written or oral, whereas an agreement can be verbal or written.

Conclusion
In summary, all contracts are agreements, but not all agreements are contracts. A contract is a legally binding agreement that involves an exchange of goods or services, whereas an agreement is a mutual understanding between two or more parties on a specific issue. It is essential to understand the differences between the two to avoid any legal disputes in the future.