All contracts are agreement but all agreement is not contracts

A contract is a legally binding agreement or relationship that

exists between two or more parties to door abstain from
performing certain acts. A contract can also be defined as
a legally binding exchange of promises between two or more
parties that the law will enforce. For a contract to be formed
an offermade must backed acceptance of which there must be
consideration. Both parties involved must intendto create
legal relation on a lawful matter which must be entered into
freely and should be possible toperform.An agreement is a
form of cross reference between different parties, which
may be written, oral and liesupon the honor of the parties for
its fulfillment rather than being in any way enforceable.All
contracts are agreement because there must be mutual
understanding between two parties for acontract to be
formed. All parties should agree and adhere to the terms and
conditions of an offer.The following cases illustrate ways in
which all contracts are agreements;In the case of invitation
to treat, where an invitation to treat is merely an invitation to
make an offer.When a firm's offer is accepted it results into
a contract provided other elements of contracts
areaccepted.Considering person A buying a radio on hire
purchase from person B who deals with electronics and
itsappliances. Both parties must come to an agreement on
payment of monthly installment withinspecified period of time.
Such an agreement result to specialty contract which
a contract under seal.Agreement. Every promise and every set
of promises, forming the consideration for each other, is
anagreement." Thus it is clear from this definition that a
'promise' is an agreement. What is a 'promise'?The answer to
this question is which defines the term." When the person to
whom the proposal is madesignifies his assent thereto the
proposal is said to be accepted. A proposal, when accepted,
becomes apromise."An agreement, therefore, comes into
existence only when one party makes a proposal or offer to
theother party and that other party signifies his assent (i.e.,
gives his acceptance) thereto. In short, anagreement is the
sum total of 'offer' and 'acceptance'.On analyzing the above
definition the following characteristics of an
agreement become evident:(a) At least two persons. There
must be two or more persons to make an agreement because
oneperson cannot inter into an agreement with himself.(b)
Consensus-ad-idem. Both the parties to an agreement
must agree about the subject matter of theagreement in the
same sense and at the same time.

Legal obligation. As stated above, an agreement to become a

contract must give rise to a legal obligationi.e., a duty
enforceable by law. If an agreement is incapable of creating a
duty enforceable by law. It isnot a contract. Thus an
agreement is a wider term than a contract.
“All
contracts are agreements but allagreements are not
contracts,"Agreements of moral, religious or social nature e.g.,
a promise to lunch together at a friend's house or totake a
walk together are not contracts because they are not likely to
create a duty enforceable by lawfor the simple reason that
the parties never intended that they should be attended
by legalconsequencesEssential Elements of a Valid ContractA
contract has been defined as "an agreement enforceable by
law." To be enforceable by law, anagreement must possess the
essential elements of a valid contract. According all
agreements arecontracts if they are made by the free
consent of the parties, competent to contract, for a
lawfulconsideration, with a lawful object, are not expressly
declared by the Act to be void, and wherenecessary, satisfy
the requirements of any law as to writing or attention
or registration