When renting a property, buying a property or carrying out any activity where two or more people are related. It is necessary to make a contract or agreement that formalizes, formally or informally, an agreement that assigns certain obligations that must be fulfilled by both parties. That is why it is considered necessary to know what the differences are between contract and agreement.
What is a contract?
It is considered as an action or activity arranged bilaterally, where the law is the protagonist to support the obligations, norms and agreements between both parties. In addition, it must be under the consent of the two or more parties that are involved in the context of the activity in order to finalize the business. Therefore, it is an agreement that has full legal validity where all the people involved must establish certain mandatory rights and duties.
Thus, in order for it to be carried out, it must be attributed to writing, since verbally it is not sufficiently sustainable if it is to be protected by the laws of the State. Along with this, the most advisable thing is that all the people who fall within this context sign, this will make all the parties affirm that they agree and are protected by the main law.
Within the document, all the conditions, rules, obligations, offers, among others, must be stated as a form of registration and legal commitment that must be fulfilled. Well, it is part of a mutual and consensual agreement to reach an end with peace of mind.
Types of contracts
- Explicit: This type of contract are those that describe in detail and in detail the terms, conditions and laws.
- Implicit: They are those that are left to the interpretation of the terms.
- Bilateral: Are those that become to establish the obligations and rights of both parties.
- Unilateral: Only one party establishes the obligations.
What is an agreement?
They are considered as an agreement of wills of two or more people with a certain subject. Unlike the contracts that are given in writing, the agreements are characterized by being verbal without legal requirement. That is, when a person accepts the conditions of the other voluntarily without a legal basis, then an agreement is being witnessed.
The fundamental aspect of this is that there is no legal determination anywhere, which means that the conditions and context to be developed must be made aware so that both parties can comply with them without inconvenience.
Because it does not have a legal basis and is verbal, it must be taken into account that there is a high risk of non-compliance by one or both parties that made the agreement. Well, it is not protected by any legislation that optimizes the compliance of any person who is involved.
your types
The agreement model will depend entirely on the number of people involved.
- Bilateral: are those that tend to involve only two parties.
- Plurilateral: are those where three or more people participate.
- Framework agreement: refers to the institutions involved that undertake to carry out and collaborate in certain activities, research, exchange of material or teaching.