Difference between Agreement and Contract
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Basis of differences
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Agreement
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Contract
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Meaning
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Every promise and every set
of promises, forming the
consideration for each
other. Ouer + Acceptance
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Agreement enforceable by law.
Agreement + Legal enforceability
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Scope
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It’s a wider term including both legal and social
agreement.
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It is used in a narrow sense
with the specification that contract is only legally enforceable agreement.
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Legal obligation
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It may not
create legal obligation. An agreement does not always grant rights to the parties
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Necessarily creates a legal
obligation. A contract always grants certain rights to every party.
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Nature
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All
agreement are not contracts.
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All
contracts are agreements.
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