The terms “contract” and “agreement” are often used interchangeably but they both, in fact, have different definitions. Let me tell you what is the difference between agreement and contract.
An
agreementexists where there is a mutual understanding related to responsibilities and rights between both to a business arrangement.
Read what is sale agreement in detailAgreement that creates legally binding obligations between respective parties is known as a
contract.
Read what is contract of sale in detail
Based on the above definitions, a contract is a particular type of agreement that you can enforce in court if required. Now that you know about the agreement and contract difference, let’s read where a written document is required.
Circumstances Where a Written Contract is Required:Subscriptions for periodical service like a newspaper;
Agreements ensuring the results of a surgical or medical procedure;
Leases for real estate that exceed 1 year;
Contracts for the sale of real estate,
An agreement for accepting another person’s debt;
Other contracts as chosen by law.
I hope now you can easily distinguish between agreement and contract.
Read how NoBroker can help you in documentation, such as agreement, sales deed, and registering.
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The terms "contract" and "agreement" are often used interchangeably in everyday conversation, but they have distinct meanings in legal contexts. If you want to know what is the difference between contract and agreement, I have shared a breakdown of the key differences here in this answer.
What are the Difference Between Contract and Agreement?
Agreement |
Contract |
It may or may not be legally enforceable. |
A contract is a specific type of agreement that is legally enforceable. |
Agreements can be informal and verbal. They do not need to follow specific formalities. |
Contracts often require written documentation, especially for complex transactions or those involving significant value (e.g., real estate purchases). |
Examples
Agreement: Two friends agree to meet for lunch next week. This is a mutual understanding, but not legally enforceable.
Contract: A lease agreement between a landlord and tenant specifying terms, conditions, and obligations is a legally binding contract.
I hope this helps you understand what difference between contract and agreement.
Get Your Sale Agreement Registered Via Legal Experts at NoBrokerRead More:
What are the Disadvantages of a Contract for Deed?
What is the difference between contract and agreement?
Santosh
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2021-09-20T17:04:42+00:00 2021-09-21T15:04:26+00:00Comment
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