Contract Basics
A mutual understanding between two or more parties that creates obligations the law will enforce.
An agreement is the meeting of the minds behind every contract. When two or more parties agree to do (or not do) something, and each side gives up something of value in return, the result is a set of promises the law can enforce.
In everyday use, "agreement" and "contract" are treated as the same thing, and for most business purposes they are. Strictly speaking, a contract is an agreement that meets the legal requirements to be binding: an offer, acceptance, and consideration exchanged between capable parties for a lawful purpose. Every NDA, MSA, and order form your business signs is an agreement in this sense.
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