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The video discusses the difference between an agreement and a contract, emphasizing that every contract is an agreement but not all agreements are contracts. It explains that for an agreement to be considered a contract, it must have four essential elements: an offer, acceptance, valid consideration, and intention to create legal relations. The parties must be competent to contract, the agreement must be made for lawful consideration and with a lawful object. It can be in oral or written form, also known as a gentlemen's agreement. The video encourages viewers to watch a previous video on non-binding agreements and to like, share, and subscribe for more content.
