Libyan International Medical University Faculty of Business Administration
Contracts and agreements play a crucial role in business dealings. While agreements are informal and flexible, contracts are formal, legally binding documents that outline duties and responsibilities. This article explores the key variances between the two, highlighting their benefits and examples to offer a comprehensive understanding for business professionals and students.
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Libyan International Medical University Faculty of Business Administration The Difference Between Contracts and Agreements Safa Muhammed Aslam Cheema : 3998 Third Semester 1 2024
Table of Contents 01 02 03 04 05 Definition Definition Examples References The Main Difference Of Contract Of an Agreement 2 2024
01 Agreement Like we said before, agreements are often informal. They are a less rigid and formal type of contract: simply, understanding or arrangement between two or more parties, often referred as "handshake agreements. they are an to A verbal agreement isn t legally binding when it involves ; Marriage or divorce agreements 3 2024
Benefits of an Agreement Quick and simple Informal Flexible in nature However, if two parties have established confidence and trust in one another, a non-contractual agreement can be the way to go, saving time and money and allowing more flexibility. 4 2024
02 Contract A contract is a written document that lays out the duties, responsibilities, parties must adhere to. Also to remember what was agreed to, especially in complex deals, and protects everyone involved if something goes wrong. and commitments both Contracts are formal and legally binding agreements. The entities involved can use them as supporting evidence if one of them fails to comply with the rules. If one party breaches the contract or fails to properly perform their end of the deal, the other party can take legal action. 5 2024
Benefits of a Contract Legally enforceable Tangible proof Minimizes risk and disputes Makes terms and responsibilities clear 6 2024
03 Main Difference A legal agreement can be informal, meaning nothing needs to be witnessed or written down. A contract, on the other hand, is both more formal and legally binding which means it must be documented. Both arrangements between two or more parties. an agreement and contract represent specific The main differences lie in their flexibility and enforceability. 7 2024
04 Example of an Ageement An agreement is made when two parties agree to something. So, for example, a father might make an agreement with his son not to be late, he should be home before dinner. If people's opinions are in accord, or match one another, then they are in agreement. 8 2024
04 Examples of a Contract Sales and Purchase Contracts: These contracts govern the sale and purchase of goods outlining the rights and obligations of the buyer and seller. or services, Examples include purchase agreements, sales contracts, agreements. and supply 9 2024
04 Examples of a Contract Employment Contracts: These contracts establish employment the terms between and an conditions employer and an employee. of They typically responsibilities, working hours, and termination provisions. cover aspects compensation, such as benefits, job 10 2024
References Agreements vs contracts: The key differences: Enable. RSS. (n.d.). https://enable.com/blog/agreements-vs-contracts-what-are-the- differences#:~:text=A%20legal%20agreement%20can%20be,between%20two%20or %20more%20parties Agreement - definition, meaning & synonyms. Vocabulary.com. (n.d.). https://www.vocabulary.com/dictionary/agreement#:~:text=An%20agreement%2 0is%20made%20when,then%20they%20are%20in%20agreement. 11 2024
Thanks Do You Have Any Question? 12 2024
