The differences between a contract and an agreement, like most considerations in the legal sphere, come down to the particulars of the language and intent surrounding the parties involved. In short, a contract is definitionally a type of agreement, but not all agreements rise to the level of a legally binding, enforceable contract.

Below, we will explore some of the elements that constitute both of these legal concepts and provide some context for their drafting as well as some examples of how they work. Both contracts and agreements have an important role in the day-to-day business dealings of individuals and companies around the country, and understanding their usefulness is critical for both the business and legal communities.