Your friend, John, approached a car manufacturer to buy a car manufacturing plant using hire purchase. The manufacturer told him that he would have an agreement prepared for his signature and he would have to make the necessary payment before the transfer of ownership of the car manufacturing plant. John was on impression that a contract and not an agreement is necessary in such instance. Advise John on the differences between an agreement and a contract and the elements essential to prepare a contract instead of an agreement. Discuss this with reference to the Contracts Act 1950, in particular, the elements essential to an enforceable agreement and the relevant case laws, if any.

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