Agreement Law and Legal Definition

Agreement is the meeting of minds or a mutual understanding between two or more persons about their reciprocal rights and duties regarding past or future performances. Often the term agreement is frequently used as a synonym for “contract, it lacks an essential element of contract, such as consideration. The term agreement is much broader in meaning than the term contract. Every contract would be an agreement but every agreement is not a contract. For example, ‘A’ invites ‘B’ for dinner and ‘B’ accepts A’s invitation. This can be an agreement, however, not a contract because it does not create a legal obligation between the parties. An agreement covers executed sales, gifts, and other transfers of property. A binding agreement makes an enforceable contract.