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 Arizona, 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 can be in the form of money, goods, services, or mutual promises. The contract must also have mutual obligations or mutuality, meaning that each party has agreed to undertake certain obligations, and specificity, which means that the terms of the contract are clear enough to be enforceable. While the terms 'agreement' and 'contract' can be used interchangeably, for a document to be enforceable as a contract in Arizona, it must include these necessary legal elements, regardless of whether it is labeled as an 'agreement' or a 'contract'.