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Which statement correctly expresses the relationship between agreements and contracts?
AAll agreements are contracts but all contracts are not agreements
BAll agreements are contracts
CAll contracts are agreements but all agreements are not contracts
DAgreements and contracts are identical in law
Answer & Solution
Correct answer: C. All contracts are agreements but all agreements are not contracts
A contract is an agreement enforceable by law, so every contract is an agreement, but only those agreements that are legally enforceable become contracts.
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