A contract is generally a written or spoken agreement between persons or entities that includes obligations for each party (mutual obligations or mutuality) and enough specific information to be enforceable by either party (specificity).

The elements of forming an enforceable contract are generally (1) an offer made; (2) acceptance of the offer; and (3) consideration given by each party for the other party’s performance of the agreement—such as money in exchange for products or services, or mutual promises exchanged—which is often referred to as the bargained-for exchange.

The word "agreement" is often used interchangeably with the word "contract," and a document labeled as an agreement (with the necessary legal elements included) is as enforceable as a document labeled as a contract.

In Arkansas, as in most states, a contract is recognized as a legally binding agreement when it contains the essential elements of (1) an offer, (2) acceptance of that offer, and (3) consideration, which is something of value exchanged between the parties. This consideration must represent a bargained-for exchange, such as money paid for goods or services, or mutual promises to perform certain actions. The terms of the contract must be specific enough to be enforceable, meaning they clearly outline the obligations of each party. While the terms 'agreement' and 'contract' can be used interchangeably, for the document to be legally enforceable, it must include these necessary legal elements. In Arkansas, contracts can be written or oral, but certain types of contracts, such as those involving real estate, must be in writing to be enforceable due to the Statute of Frauds. It's important to note that while oral contracts are legally valid, they can be more difficult to prove in court.