Agreement

It is a document that imposes specific duties and responsibilities on the involved parties on their agreement to contract terms and conditions. It is a legal binding within which the parties step in with their will for monetary gains and profits. Such documents are time-bound for a specific period. 

• A preamble states agreement title, execution date, and the involved parties. 
• Definitions of mutual contract terms. 
• Consideration of the agreement subject.
• Representations and warranty on the validity of the facts stated.
• A promise to undertake actions before consummation of the agreement.
• Clauses and conditions
• Provisions and remedies
• Signatures

The purpose of a contract is to communicate the contract subject, duties and responsibilities, and other details stating the desired outcome to other parties. It is used to create a legal obligation for both ends to perform their specific tasks and help each other to achieve the set objective.  

A contract is null and void from the time of its creation if it is not enforceable on the parties involved. A void contract contains unlawful consideration or object, or while signing it, the party representative was not of sound mental health. 

• A contract is a formal arrangement and is enforceable by law on the parties involved. An agreement is usually informal and is not applicable.
• A contract may be enforceable in a law court, but an agreement has no legal consequences on missing any of the necessary elements of a contract.