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Agreement vs. contract: What’s the difference?

From business transactions and employment relationships to renting an apartment or purchasing goods, agreements and contracts provide the framework for

Rachana Chotia
Rachana Chotia
July 8, 2023
 min read
Agreement vs. contract: What’s the difference?

Frequently asked questions

What is the difference between an agreement and a contract?
The key difference between an agreement and a contract is that an agreement is a broader term encompassing any mutual understanding between parties, while a contract is a legally binding agreement that involves specific terms, conditions, and considerations that can be enforced by law.
What are contract vs agreement examples?
Examples of contracts include employment contracts, lease agreements, and sales contracts, while examples of agreements include roommate agreements, service agreements, and non-disclosure agreements. Contracts are typically more formal and legally binding, while agreements can be more informal and based on mutual understanding.
Are all agreements contracts?
No, not all agreements are contracts. While all contracts are agreements, not all agreements meet the legal requirements to be considered contracts. Contracts require additional elements such as consideration, legal capacity, and intention to create legal relations to be legally enforceable.
Is an agreement legally binding?
Not all agreements are legally binding. Whether an agreement is legally binding depends on various factors such as the intention of the parties, consideration, and the presence of necessary elements to create a binding contract.
Rachana Chotia
Rachana Chotia
Rachana is the Content Marketing Manager at Signeasy, where she works with the product & customer teams to create content related to eSignature and contract workflows. In her free time, she enjoys going for walks, watching anime, and reading a good book.
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