All contracts are agreements but all agreements are not contracts.

No doubt it is a valid and true statement. Before critically discussing the statement, we must know
the exact and basic meanings of the two terms contract and agreement in the context of business
law. For understanding the meaning, we have to go to the contract act 1872 that is applicable in
subcontinent
A contract is defined under section 2(h) of Contract Act - “An agreement enforceable by law is a
contract” which in itself gives us the fact that all contracts have to be an agreement. There will be
no contract if there is no agreement.
Whereas all agreements are not contracts because an agreement to become a contract must give
rise to a legal obligation. If an agreement is incapable of creating a duty enforceable by law. It is
not a contract. Thus an agreement is a wider term than a contract. For example, you make an
agreement with your friend that if you do his work then he will be giving you a treat, there is no
legal obligation here so it cannot be considered as a contract.
In a nut shell, an agreement is the basis of a contract and contract is the structure
constructed on these basis. An agreement starts from an offer and ends on consideration while a
contract has to achieve an other milestone that is enforceability. Due to this, breach of an agreement
does not give rise to any legal remedy to the aggrieved party while breach of contract provides
legal remedy to the aggrieved party against the guilty party. Thus we can say that all contracts are
agreements but all agreements are not contracts.