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all agreement are contract but all contract are not agreement. comment.
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all agreement are contract but all contract are not agreement. comment...
A contract is a legally binding agreement or relationship that exists between two or more parties to do or abstain from performing certain acts. There must be offer and acceptance for a contract to be formed. An offer must backed by acceptance of which there must be consideration. Both parties involved must intend to create legal relation on a lawful matter which must be entered into freely and should be possible to perform.
Definition of contract
According to section 2(h) of the Contract Act 1872:
” An agreement enforceable by law is a contract.”
A contract therefore, is an agreement the which creates a legal obligation 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.
Example;
A promises to sell a horse to B for Rs.100,000, and B promises to buy horse at that price.
All contracts are agreements:
For a Contract to be there an agreement is essential; without an agreement, there can be no contract. As the saying goes, “where there is smoke, there is fire; for without fire, there can be no smoke”. It could will be said, “where there is contract, there is agreement without an agreement there can be no contract”. Just as a fire gives birth to smoke, in the same way, an agreement gives birth to a contract.
What is agreement?
An agreement is a form of cross reference between different parties, which may be written, oral and lies upon the honor of the parties for its fulfillment rather than being in any way enforceable.
All agreements are not contracts
As stated above, an agreement to become a contract must give rise to a legal obligation. If an agreement is incapable of creating a duty enforceable by law. It is not a contract. Thus an agreement is a wider term than a contract.
Agreements of moral, religious or social nature e.g., a promise to lunch together at a friend’s house or to take a walk together are not contracts because they are not likely to create a duty enforceable by law for the simple reason that the parties never intended that they should be attended by legal consequences
On the other hand, legal agreements are contracts because they create legal relations between the parties.
EXAMPLE: a- A invites B to dinner. B accepts this invitation but does not attend the dinner. A can not sue B for damages. It is social agreement because it does not create legal obligation. So it is not a contract.
b- A promises to sell his car to B for one million. It is legal agreement because it creates legal obligations between the parties. So it is a contrac
According to section 10 of the contract act 1872,
“All agreements are contracts if they are made by the free consent of the parties, competent to contract, for a lawful consideration and with a lawful object and not hereby declared to be void.”
Thus an agreement becomes a contract when at least the following conditions are satisfied.
1-free consent
2-competency of the parties
3-lawful consideration
4- lawful object.
Conclusion:
In a nut shell, an agreement is the basis of a contract and contract is the structure constructed on these basis. An agreement starts from an offer and ends on consideration while a contract has to achieve an other milestone that is enforceability. Due to this, breach of an agreement does not give rise to any legal remedy to the aggrieved party while breach of contract provides legal remedy to the aggrieved party against the guilty party. Thus we can say that all contracts are agreements but all agreements are not contracts.
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Most Upvoted Answer
all agreement are contract but all contract are not agreement. comment...
And Contract
An agreement refers to a mutual understanding between two or more parties about a particular subject matter. It can be oral or written and is usually based on trust and goodwill. On the other hand, a contract is a legally binding agreement that is enforceable by law. It requires certain elements such as offer, acceptance, consideration, and intention to create legal relations.
While all agreements can be considered as contracts in a general sense, not all agreements meet the legal requirements to be considered as contracts. For a contract to be legally enforceable, it must have all the necessary elements and must not be void or voidable due to various reasons such as mistake, fraud, undue influence, or lack of capacity.
Therefore, while every contract is an agreement, not every agreement can be considered as a contract. This distinction is crucial because contracts provide legal remedies and protections for parties involved, whereas agreements that do not meet the requirements of a contract may not have the same level of enforceability and legal backing.
An agreement refers to a mutual understanding between two or more parties about a particular subject matter. It can be oral or written and is usually based on trust and goodwill. On the other hand, a contract is a legally binding agreement that is enforceable by law. It requires certain elements such as offer, acceptance, consideration, and intention to create legal relations.
While all agreements can be considered as contracts in a general sense, not all agreements meet the legal requirements to be considered as contracts. For a contract to be legally enforceable, it must have all the necessary elements and must not be void or voidable due to various reasons such as mistake, fraud, undue influence, or lack of capacity.
Therefore, while every contract is an agreement, not every agreement can be considered as a contract. This distinction is crucial because contracts provide legal remedies and protections for parties involved, whereas agreements that do not meet the requirements of a contract may not have the same level of enforceability and legal backing.
Community Answer
all agreement are contract but all contract are not agreement. comment...
An agreement comes into existence when one party makes a proposal or offer to the other party and that other party gives his acceptance to it. A contract is an agreement enforceable by law. It means that to become a contract an agreement must give rise to a legal obligation i.e. duty enforceable by law. If an agreement is incapable of creating a duty enforceable by law, it is not a contract. There can be agreements which are not enforceable by law, such as social, moral or religious agreements. The agreement is a wider term than the contract. All agreements need not necessarily become contracts but all contracts shall always be agreements.
All agreements are not contracts: When there is an agreement between the parties and they do not intend to create a legal relationship, it is not a contract.
All contracts are agreements: For a contract there must be two things (a) an agreement and (b) enforceability by law. Thus, existence of an agreement is a pre-requisite existence of a contract. Therefore, it is true to say that all contracts are agreements.
Thus, we can say that there can be an agreement without it becoming a contract, but we can't have a contract without an agreement.
All agreements are not contracts: When there is an agreement between the parties and they do not intend to create a legal relationship, it is not a contract.
All contracts are agreements: For a contract there must be two things (a) an agreement and (b) enforceability by law. Thus, existence of an agreement is a pre-requisite existence of a contract. Therefore, it is true to say that all contracts are agreements.
Thus, we can say that there can be an agreement without it becoming a contract, but we can't have a contract without an agreement.
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