All contracts are agreements but all agreements are not contracts.

This statement encapsulates a fundamental concept in contract law. It highlights the crucial distinction between an agreement and a contract:

1. All contracts are agreements: This part of the statement is accurate. In legal terms, a contract is a specific type of agreement. An agreement is a mutual understanding between two ________ _______ _________ ____ _______ _____ ______ _____ __________ ___ ___.
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