Agreement vs Contract

When to use each in English, with meaning, register, and examples.

 AgreementContract
MeaningA decision or understanding made by two or more people.A legal agreement between two or more parties.
Register-formal
CEFR levelB1B2
Part of speechnounnoun
Usage notesUsed when talking about decisions made together. Appropriate in both spoken and written contexts. Avoid in very informal settings where simpler words might suffice.Use 'contract' in legal and business contexts. It may not be suitable in casual conversations. Also, be aware of its different meanings in legal versus general usage.

Frequently asked questions: Agreement vs Contract

What's the difference between "Agreement" and "Contract"?

"Agreement" means: A decision or understanding made by two or more people. "Contract" means: A legal agreement between two or more parties.

When should I use "Agreement" and "Contract"?

"Contract" is formal.

Are "Agreement" and "Contract" the same CEFR level?

"Agreement" is at B1, "Contract" is at B2 on the CEFR scale.

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