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A contract is a type of agreement, but not all agreements are contracts. In order for an agreement to be binding and valid, it must be made by parties competent to contract, for lawful consideration and with a lawful object. A contract must have four key ingredients: an offer, an acceptance, a valid consideration, and an intention to create legal relations. Non-binding agreements can still exist between parties, even if not intended to be binding initially. These agreements can be made orally or in writing. Make sure to like, share and subscribe for more informative videos on this topic.
