LexBrew
Usage Entry 1402 / 1605 60-second read

Contract vs. Agreement

A legally binding agreement (with consideration) versus any meeting of minds.

The comparisoni

✗ Wrong

We have a verbal agreement — that's a contract.

✓ Correct

We have a verbal agreement — it may or may not be a contract. Contracts require offer, acceptance, and consideration. Many agreements aren't enforceable as contracts.

The ruleii

CONTRACT = enforceable. AGREEMENT = any.

AGREEMENT is broad — any meeting of minds. CONTRACT is narrower — an agreement with the legal elements (offer, acceptance, consideration, capacity, lawful purpose) that make it enforceable. All contracts are agreements; not all agreements are contracts.

Memory aidiii

Remember it like this

Contract = legal teeth.

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