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publicado em:22/04/22 4:44 PM por: gosites

When it comes to legal terms, it`s easy to get confused especially when discussing similar concepts such as agreements and contracts. While the two terms are often used interchangeably, they are not the same thing. Contracts and agreements have different legal implications and serve different purposes, especially in the UK. In this article, we will discuss the difference between a contract and an agreement in the UK.

What is an Agreement?

An agreement is a legally binding understanding between two or more parties. Unlike contracts, agreements don`t always involve the exchange of money. An agreement can be verbal or written, and it can involve any kind of legal transaction, such as a lease agreement, a non-disclosure agreement, or a service agreement. The main difference between an agreement and a contract is that an agreement is often less formalized and less detailed.

Agreements can be either express or implied. An express agreement is an agreement that is clearly stated. An example of an express agreement would be a signed lease between a landlord and a tenant. An implied agreement, on the other hand, is an agreement that is not explicitly stated, but is implied by the actions of the parties involved. For example, if you go to the hairdresser to get your hair cut and pay for the service, you have an implied agreement with the hairdresser.

What is a Contract?

A contract is a legally binding agreement between two or more parties that involves an exchange of something valuable, such as money, goods, or services. Unlike an agreement, a contract is usually more complex and formalized in the UK. Contracts must meet certain legal requirements to be enforceable, such as an offer, acceptance, consideration, and intention to create legal relations.

Contracts are categorized based on their formation. Written contracts are contracts that are in writing and signed by all parties involved. Oral contracts, also known as verbal contracts, are agreements that are made verbally between two or more parties. These contracts can be difficult to prove since there isn`t a written agreement. Finally, implied-in-fact contracts are contracts that are formed based on the parties` actions and conduct, rather than a written or oral agreement.

Differences between Contract and Agreement

The key differences between a contract and an agreement are the level of formality and the exchange involved. Agreements are generally less formal and often don`t involve an exchange of anything valuable, while contracts are more formal and involve an exchange of something valuable. A contract is also more complex than an agreement since it must meet certain legal requirements to be enforceable.

Another difference between a contract and an agreement is the enforceability. While both agreements and contracts are legally binding, contracts tend to be more enforceable since they have explicit terms and conditions. This means that if one party breaches the contract, the other party can take legal action to enforce their rights.


In conclusion, agreements and contracts are two different legal concepts even though they are often used interchangeably. Understanding the difference between the two is important, as it can have significant implications for your legal rights and responsibilities. An agreement is generally less formal and involves less detailed terms than a contract, while a contract is more complex and legally binding. As always, it`s best to consult with a legal professional to help you navigate these terms and ensure you are protected.