business agreement is differentiated from contract in such a way that it is a mutual understanding while a contract is an agreement between two or more parties.3 min read business agreements are often referred to as contracts, but they are not exactly the same thing. the first three relate to the agreement itself. the other three relate to the parties who create the contract. most agreements should be in writing even if not legally required. keep the legalese to a minimum. keep the verbiage clear and concise. when negotiating a business agreement, do not waste time with a person who does not have the authority to make a binding decision. identify each party in the contract using correct legal names to identify who has the responsibility for performing the obligations specified in the agreement.