When 2 persons agreed on something let say to go shopping - an agreement is formed. This is the very first element for a contract to be formed, but the agreement is not a contract if other required elements are not fulfilled - the most important things are consideration provided by the agreeing parties and intention to create legal relation.

The subject of the agreement is not necessarily to be 'formal' or in writing - even agreement to fix broken electrical appliance on exchange of money as payment for the service is a good contract. Money here is consideration for the service.

Agreement which is not contract is not enforceable by law. Only a valid contract can be enforced by law. Example, if a boyfriend and a girlfriend only promised (agreed) to get married, it is a mere agreement which if the girlfriend later refused to marry the boy, the boy cannot go to court to force the girl to marry him or to claim for compensation against the girl for the loss he suffered.

But if they got engaged, ring given in a bethrotal ceremony, it shows that the agreement had acquired other elements forming a contract - the parties indeed had intention to create legal relation between them. So in this event the boy may get the help of the court to enforce the contract e.g. to claim compensation against the girl. 

 Iza, Malaysia

simply ,the contract is enforceable by law,but agreement cannot forced by law

Every contract is an agreement but not every agreement is a contract. Assuming the contract is valid according to the laws of the country that apply to it, it will be binding. A country's laws will require, for instance, that the parties intend to create legal relations (they intend that the innocent party can sue the wrongdoing party for breaking the contract), a valid offer, acceptance and consideration ( e.g. price). I offer to buy your car (offer), you accept my offer (acceptance) and we agree on the price of 10,000 Euros ( consideration). If there is a breach of contract, the party who has broken it is responsible for the breach and will have to pay damages, or the court may require that that party must perform the contract according to its terms. An agreement might fall short of a contract. For example, if I agree to take you out for a meal or phone you at noon, you would not be able to sue for me if I fail to keep my promise. Some or all of the legal requirements for a contract will be missing. It was never intended between us that you will sue me if I fail to sue you. There is no offer, no acceptance and no consideration. But there is an agreement which falls short of being a contract and the innocent party will not be able to sue me.

JEREMY KEYS

Lawyer-linguist

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An Agreement is composed of the following: Offer, Acceptance and Consideration. what it lacks is the intention to be legally binding. From what i understand, the case, Rose & Frank Company v JR Crompton & Bros Ltd [1923] 2 KB 261; [1925] AC 445 best exemplifies an agreement.

The courts held that the agreement between the plaintiff and defendant was simply an agreement in honour: "The intention clearly express is that the arragement set out in the document is only an honourable pledge, and that all legal consequences and remedies are excluded from it."

A contract on the other hand, must have the intention to be bound legally, the parties must have reached an agreement, must be supported by consideration, parties must have legal capacity, consent must be genuine, object of the contract must be legal and possible and the contract must be written in the required form, where necessary.

Some contracts must be in writing (i.e. Insurance contracts or assignment of Patents), else they will be considered void from the beginning.

I was asked to sign a document titled 'Part Time Employment Agreement" for a 1 year (part time) teaching position in Japan. Is this document a 'contract' ??

( This Agreement mentions that A employs B, it describes the employee's job description, working days/hours, salary, duration of Agreement validity, termination of Agreement.

Under the title DISPUTE it reads : 'Any disputes arising in connection with this Agreement shall be governed by Japanese law.' )