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This video discusses the difference between agreements and contracts. An agreement can exist between parties even if it was not intended to be binding. For a contract to be valid and binding, it must be made by parties competent to contract, for lawful consideration, with a lawful object. Contracts must have four key ingredients: an offer, acceptance, valid consideration, and intention to create legal relations. An offer is the indication of willingness to do or refrain from doing something. Subscribe to see more videos like this.