A formal agreement is a legal or official document that establishes a binding agreement between two or more parties. Synonyms for the term "formal agreement" include contract, treaty, covenant, accord, pact, settlement, arrangement, and understanding. These words all represent a formal commitment that is legally binding and carries important consequences if not upheld. While the nuances of these words may differ, they all communicate the idea of a formal agreement that is binding and enforceable. Whether it is an important business deal or a treaty between nations, formal agreements are crucial for establishing trust and providing a legal framework for the parties involved.