All Contracts are Agreement but All Agreements are Not Contract

Contracts is defined in S2(h) of Indian contract Act, 1874 .Contracts and Agreements are mostly considered synonymous terms, but they are different in many aspects, and they have a totally different definition. An agreement is the basic structure and when the agreement is legally bounding it becomes a contract, but if it does not include the essentials to form a contract then it can become a void, voidable, domestic agreement. Therefore, not every agreement turns into a contract, but it can be considered as an essential step forward to form a contract. This paper aims to differentiate between these two terms and elaborate the essentials to turn an agreement into a contract.