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a contract and an agreement are related legal  Concepts but they have some key differences one   nature contract a contract is a legally binding  agreement between two or more parties it outlines   the rights and obligations of each party and is  enforceable by law agreement an agreement is a   broader term that refers to a mutual understanding  or Arrangement between parties which may or may   not be legally binding two enforceability contract  contracts are enforcable by law and parties can   take legal action if one party fails to fulfill  its obligations agreement not all Agreements are   legally enforceable some agreements like social  agreements may not have the legal backing to   compel parties to perform three formality contract  contracts often have formal requirements such as   a written document signatures and specific  terms they are typically more detailed and   specific agreement agreement ments can be formal  or informal while a formal written

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