510922671 Nilanchal Sahu
Q-1 All contracts are agreement but all agreement are not contracts
is a legally binding agreement or relationship that exists between twoor more parties to do or abstain from performing certain acts. A contract can also be definedas a legally binding exchange of promises between two or more parties that the law willenforce. For a contract to be formed an offer made must backed acceptance of which theremust be consideration. Both parties involved must intend to create legal relation on a lawfulmatter which must be entered into freely and should be possible to perform.An
is a form of cross reference between different parties, which may bewritten, oral and lies upon the honor of the parties for its fulfillment rather than being in anyway enforceable.
All contracts are agreement
because there must be mutual understanding between twoparties for a contract to be formed. All parties should agree and adhere to the terms andconditions of an offer.
The following cases illustrate ways in which all contracts are agreements
;In the case of invitation to treat, where an invitation to treat is merely an invitation to makean offer. When a firm's offer is accepted it results into a contract provided other elements of contracts are accepted.Considering person A buying a radio on hire purchase from person B who deals withelectronics and its appliances. Both parties must come to an agreement on payment of monthly installment within specified period of time. Such an agreement result to specialtycontract which a contract under seal.
contracts are agreement
until avoided for example, avoidable contract where one of the parties can withdraw from it if s/he wishes. This occurs due to minor agreement andmisrepresentation or undue influence. Considering a case where person A make contractwith person B but during the contract period B realizes that he was engaged to perform anagreement under undue influence.
Definition of contract
According to section 2(h) of the Indian Contract Act: " An agreement enforceable by law is acontract." A contract therefore, is an agreement the object of which is to create a legalobligation i.e., a duty enforceable by law.From the above definition, we find that a contract essentially consists of two elements: (1)An agreement and (2) Legal obligation i.e., a duty enforceable by law. We shall nowexamine these elements detail.1
As per section 2 (e): " Every promise and every set of promises, formingthe consideration for each other, is an agreement." Thus it is clear from this definition that a