agreement
Definition
An agreement is a mutual understanding between two or more parties where everyone involved commits to doing something or exchanging something of value. Courts can enforce agreements when they meet certain requirements, turning them into legally binding contracts.
Example
When you shake hands with a supplier and promise to buy 100 units every month in exchange for a discounted price, you have created an agreement.
Watch Out
Verbal agreements can be legally binding but are incredibly hard to prove if a dispute arises, so always get important agreements in writing.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.