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What is the difference between an Outtake and a Demo?

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What is the difference between an Outtake and a Demo?

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For example, band X is looking for a record contract, so they get their drummer’s cousin (who has a MiniDisc) to help them record a few tracks. They master it onto CDR and maybe sell a few copies at shows. But the real reason they did it is to send copies to record companies. Record Company Z listens to X’s recording and thinks, “these guys are really good,” so he gives them a contract. They go off to record an album. While in the studio, they record 16 brilliant songs. The record company says that 3 of the songs don’t really fit with the mood of the rest of the album, so those 3 songs are cut. Also, they don’t like the way song Y has been recorded, and ask for it to be recorded in a more upbeat style. The album is released and X are an instant worldwide hit. Now, their original recording which they made on a MiniDisc is a demo. If the 3 songs which were cut from the album, and the original version of song Y somehow get leaked from the studio (maybe a recording technician is a bootlegg

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