When it comes to legal documents, there is often confusion surrounding the terms “agreement” and “contract.” While these terms are often used interchangeably, they actually have distinct differences.
An agreement is a mutual understanding between two or more parties, often verbal or written, outlining the terms and conditions of a particular arrangement. An agreement does not necessarily need to be legally binding, but can still be enforceable in certain circumstances.
On the other hand, a contract is a legally binding document that outlines the terms and conditions of an agreement between two or more parties. A contract is enforceable by law and can be used as evidence in court if one party does not fulfill their obligations under the agreement.
So, can an agreement become a contract? The answer is yes. An agreement can become a contract if both parties agree to make it legally binding. This can be done by including specific language in the agreement that indicates the parties` intention to create a contract. For example, using words like “shall,” “will,” or “must” can indicate that the agreement is meant to be legally binding.
Another important factor in making an agreement a contract is the consideration. Consideration is something of value that one party gives to another in exchange for something else. In a contract, consideration is necessary to create a legally binding agreement. This can be in the form of money, goods, services, or another valuable item.
It is important to note that not all agreements can or should be turned into contracts. For example, if the agreement is not clear and specific enough, or if one party is not interested in making it legally binding, it may not be appropriate to turn it into a contract.
In conclusion, an agreement can become a contract if both parties agree to make it legally binding and if consideration is present. If you are unsure whether your agreement should be turned into a contract, it is always best to consult with a legal professional to ensure that you are protected and that your rights are upheld.