agreement

Meeting of minds (or an evidence of mutual accord or understanding) between two or more legally competent parties, about their relative duties and rights regarding current or future performance. Although a binding contract can (and often does) result from an agreement, an agreement typically documents the give-and-take of a negotiated settlement and a contract specifies the minimum acceptable standard of performance.

Every business is affected by a wide variety of rules. Some of these rules are difficult to change and costly to break, such as laws enacted by government. Other rules are more easily changed or broken, such as those created by convention, inertia, or a herd mentality. Contracts and agreements lie somewhere between these two extremes.