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 North Carolina, a contract is recognized as a legally binding agreement when it meets certain criteria. The essential elements for forming an enforceable contract in North Carolina include (1) an offer, (2) acceptance of that offer, and (3) consideration, which refers to something of value exchanged between the parties. This could be money, 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 the terms of the contract are clear enough to be enforced. While the terms 'agreement' and 'contract' can be used interchangeably, for a document to be enforceable as a contract, it must contain these necessary legal elements. Whether a contract is written or oral, it can be enforceable if these elements are present, though certain types of contracts must be in writing to be enforceable under the Statute of Frauds, such as contracts for the sale of land or agreements that cannot be performed within one year.