Business, Legal & Accounting Glossary

Definition: Agreement


Quick Summary of Agreement

A meeting of the minds. An agreement is made when two people reach an understanding of a particular issue, including their obligations, duties and rights. While an agreement is sometimes used to mean contract — a legally binding oral or written agreement — it is actually a broader term, including understandings that might not rise to the level of a legally binding contract.

What is the dictionary definition of Agreement?

Dictionary Definition

  1. An understanding between entities to follow a specific course of conduct.
  2. A state whereby several parties share a view or opinion; the state of not contradicting one another.
  3. A legally binding contract enforceable in a court of law.
  4. Rules that exist in many languages that force some parts of a sentence to be used or inflected differently depending on certain attributes of other parts.
  5. An agreeable quality.


Full Definition of Agreement

1) n. any meeting of the minds, even without legal obligation. 2) in law, another name for a contract including all the elements of a legal contract: offer, acceptance, and consideration (payment or performance), based on specific terms.

A meeting of minds with the understanding and acceptance of reciprocal legal rights and duties as to particular actions or obligations, which the parties intend to exchange; a mutual assent to do or refrain from doing something; a contract.

The writing or document that records the meeting of the minds of the parties. An oral compact between two parties who join together for a common purpose intending to change their rights and duties.

An agreement is not always synonymous with a contract because it might lack an essential element of a contract, such as consideration.

Examples of Agreement in a sentence

To enter an agreement; the UK and US negotiators nearing agreement; he nodded his agreement.
The results of my experiment are in agreement with those of Michelson and with the law of General Relativity.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Agreement. Payroll & Accounting Heaven Ltd.
December 06, 2022
Chicago Manual of Style (CMS):
Agreement. Payroll & Accounting Heaven Ltd. (accessed: December 06, 2022).
American Psychological Association (APA):
Agreement. Retrieved December 06, 2022
, from website:

Definition Sources

Definitions for Agreement are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 8th October, 2021 | 0 Views.