Is there any difference between a contract and an agreement?

• Technically yes. A contract is legally binding but an agreement is not.
• An agreement refers to a situation where there is no intention to create legal relations such as if you agree to lend your boat to your brother for the weekend.
• The terms “contract” and “agreement” are commonly confused and sometimes a person talking about an agreement may be referring to a contract that is legally binding.
• It is presumed that agreements between close friends or family members are not intended to be legally binding. However if the parties are strangers or “at arm’s length” and the agreement has a commercial basis it is much more likely to be intended as a legally binding contract.
• If you need more information about whether a specific agreement is legally binding you can use our free and anonymous Ask a Lawyer service.