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 Maine, as in other states, a contract is a legally binding agreement between parties that creates mutual obligations. The essential elements for an enforceable contract in Maine include an offer, acceptance of that offer, and consideration, which refers to something of value exchanged between the parties. This could be money, services, or mutual promises. The terms of the contract must be specific enough to provide a clear understanding of the parties' obligations and to be enforceable in a court of law. While the terms 'agreement' and 'contract' can be used interchangeably, the enforceability of the document hinges on the presence of these legal elements, not the label of the document. Therefore, whether a document is titled an 'agreement' or a 'contract,' it will be considered legally binding if it contains an offer, acceptance, and consideration, along with specificity and mutual obligations.