In our legal translations, the terms “contract” and “agreement” are amongst the most commonly used terms.

A contract is an agreement, but an agreement is not always a contract.

An agreement can be informal or it may be written, while a contract may be verbal or written, but a contract is always enforceable if it contains the necessary requirements.

An agreement is an arrangement between two or more parties to do, or not do, something. Meanwhile, a contract is a formal arrangement between two or more parties to do, or not to do, something. But its terms and conditions are legally enforceable – perhaps in court or through arbitration. That means if someone breaks them, the other party can take legal measures. Contracts are valid if they contain all the required elements of a contract, and once all the parties have accepted the terms (which by signing the contract).