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Difference between Contract and Agreement | Law Exams

 DIFFERENCE BETWEEN CONTRACT AND AGREEMENT

Aspect	Contract	Agreement
Definition	A legally binding agreement enforceable by law.	A mutual understanding or arrangement between two or more parties.
Essential Elements	Offer, acceptance, consideration, intention to create legal relations, and capacity of the parties.	Offer and acceptance.
Consideration	There must be consideration while forming the contract.	Agreements can be formed without consideration.
Defined under	Section 2 (h) of the Indian Contract Act, 1872.	Section 2 (e) of the Indian Contract Act, 1872.
Enforceability	Legally enforceable by the parties involved.	May or may not be legally enforceable.
Legal Obligations	Creates legal obligations between the parties.	May or may not create legal obligations, depending on the intention.
Nature of Parties	Parties can be individuals, companies, or entities.	Parties can be individuals, companies or entities.
Legal Consequences	Breach of contract may lead to legal remedies or damages.	Breach of agreement may not have the same legal consequences as a contract
Written/Formal Requirement	Some contracts must be in writing and comply with specific formalities.	Agreements can be oral or written, and formalities may not be necessary.
Registration	Some contracts require registration, e.g., sale of immovable property	Agreements generally do not requure registration.
Mutual Consent	Requires mutual consent of the parties involved.	Requires mutual consent of the parties involved.
Intention to be Legal	Must have an intention to create legal relations.	May or may not have an intention to create legal relations.