An agreement is any event in which two or more people or parties commit to doing something together—a meeting of minds. Contracts are a subset of agreements.
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This might be a surprising take from a company known for signature software, but we think we should be talking about agreements more and not just contracts.
Contracts are legally enforceable documents that legal teams work on every day. They memorialize terms, conditions, rights, and obligations. A contract involves an offer by one party and acceptance by another, often with some negotiation and counter-offers in between. Issues like enforceability are governed by a thicket of laws and regulations.
Specifically, a contract must have:
Consideration is the main difference between a contract and an agreement. Consideration is what each party promises to do in order to execute the contract. You can think of it as the output of the contract: the goods, services, or other things of value that each party offers. For example, when you agree to buy a car, your consideration is your money and the dealer’s consideration is the car.
Learn more about contracts in this article.
An agreement is any event in which two or more people or parties commit to doing something together—a meeting of the minds. Contracts are a subset of agreements, but they’re only one kind of agreement. To put this another way: all contracts are agreements, but not all agreements are contracts.
Organizations and individuals make a lot of agreements that don’t involve formal lawyer-led negotiation all the time, like job offers, work orders, invoices, and leases.
Some other examples:
The list goes on.
At Docusign, we’re focused on intelligent agreement management to help unlock the power of data in a way that works for everyone, not just legal departments. That enables organizations to gain greater insight into their business and create new services that better serve their customers and achieve a competitive advantage. So the next time you hear us talk about agreements instead of contracts, that’s why.
Here are some examples of agreements that organizations create every day, arranged by line of business.
