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Explain critically- “All contracts are agreement but all agreements are not

contract”

Agreement = Offer + Acceptance.


Contract = Agreement + Enforceability by law.
According to section 2(h) of the Contract Act, 1872, “an agreement enforceable
by law is a contract”. That means all agreements are not contract. Obviously, an
agreement is a prerequisite for the formation of a contract. In order to become an
agreement into a contract, it has to satisfy all the essentials of a valid contract as
mentioned in section 10 of the Contract Act 1872.
Section 10 says, “All agreements are contract if they are made by the free consent
of parties competent to contract, for a lawful consideration and with a lawful
object, and are not hereby expressly declared to be void”.
An agreement clubbed with enforceability by law and several other features (i.e..,
free consent, consideration, etc..,) will create a valid contract. Therefore,
obviously, all contracts will be agreements.

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