§ 6-1-1. Differences between contracts and agreements.

A.

Contract —A contract is a legally binding relationship that requires both parties in the relationship to provide something of value to each other in the performance of the contract. It is legally binding on each of the parties from the moment of contract award.

B.

Agreement —An agreement is a non-binding arrangement in which the parties agree to the manner in which they will conduct business with each other in the event that both parties choose to do business with each other. The manner in which an agreement becomes a contract is when Horry County issues and the contractor accepts an order against the agreement. The order that is issued becomes the contract and its performance is governed by the terms of the agreement.

C.

When to use agreements/When to award contracts —Contracts are used when it is certain that Horry County wants to acquire that which is the subject matter of the contract. Agreements are used when Horry County believes, but is not certain, that it will do repetitive business with a procurement participant, and it uses the agreement to establish the terms that will govern that repetitive business.