What's the difference between a contract and an agreement?

A contract is an agreement enforceable by law between private parties and creating a mutual obligation.

An agreement is defined as a manifestation of mutual assent by two or more individuals and is informal.

Agreements are usually casual and verbal. A verbal agreement will rarely hold up in court, but a written agreement could still masquerade as a contract. The scope of agreements are generally broader, and the range of a contract narrower. Agreements cover all types of arrangements, including contracts, while contracts only cover legally enforceable documents. Contracts have to have the essential elements of 1) offer and acceptance, 2) consideration, 3) a meeting of the minds, 4) mutual assent, 5) legal capacity to contract (age of majority and mentally fit) and 6) legality of contract. An agreement becomes a contract if it includes the preceding elements and any other elements to ensure legality in the relevant jurisdiction.