All contract are agreement; but all agreement are not contract discuss?Introduction:
The law relating to contracts is to be found in the Indian Contract Act, 1872. It comes into forcefrom 1
September, 1872. It extends to the whole of India except the state of Jammu & Kashmir.
is derived from the Latin word
which means draw together. It is anagreement entered into between two or more person/ parties subject to certain terms & condition for lawfulconsideration.
Section 2(h) of the Indian Contract Act, 1872 defines a
as an agreement enforceable by law.Section 2(e) defines
as ³every promise and every set of promises forming consideration for each other.´Section 2(b) defines
in these words: ³When the person to whom the proposal is made signifies his assentthereto, the proposal is said to be accepted. A proposal when accepted becomes a promise.´
According to Section 10, ³All agreements are contracts if they are made by free consent of parties,competent to contract, for a lawful consideration and with a lawful object and are not hereby expresslydeclared to be void´.
As per the definition given in the Indian contract Act 1872 a contract must essentially consist of the followingelements:1)
An Agreement; 2)
Enforceability by Law
: The term Agreement has been defined under Section 2(e) of the Indian contract Act as Everypromise and every set of promises, forming the consideration for each other, is an
Enforceability by Law
: an Agreement, to become a contract must give raise to a legal obligation. The term obligationis defined as a legal tie, which imposes upon a definite person or persons the necessity of doing or abstaining fromdoing a defiant act or acts. It may be social or legal matters. An agreement, which gives raise, to a social contract isnot a contract. In order to give raise to a contract the agreement must be a legal agreement.Therefore
Contract = Agreement + Enforceability by Law.Agreement = Offer + Acceptance + Enforceability by Law
istinction between contract and agreement:contract
It emerges from an agreement.
Sec. (2(i) and 10 define contract.
very contract is an agreement.
It is always legal and is enforceable.
It emerges from consent of the parties.
Sec. (2(e) define agreement.
very agreement is no contract.
It may be moral and may not enforceable.
Agreement and Contract
It is the most common method of making a contract through an agreement. One party makes an offer and the otherparty accepts the same.
Agreement = Offer + AcceptanceExamples:
A promises to deliver his house to B and in return B promises to pay a sum of Rs 50000/- to A. both of them agree the offer made by the party. It is said to be an agreement between A and B. thus a validcontract is concluded between them.
An agreement to sell a scooter is a contact.
An agreement of lease is a contract.
An agreement of hire-purchase is a contract etc.