All Contracts ARE Agreement BUT ALL Agreements ARE NOT Contracts – Legum Vox PDF

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its describe the conract law. and all the...

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person, two parties are required as a promise cannot be made by one party only. 2. Promise: When a proposal made by one party is accepted by another party it becomes a promise. Section 2(b) of the Indian Contract Act, 1872, defines the term “promise”. It provides: “when one person to whom the proposal is made, signifies his assent thereto, the proposal is said to be accepted. A proposal, when accepted, becomes a promise”. 3. Consideration: “Consideration” is definable as the “inducement to a contract,” or the “cause, motive, price, or impelling influence which induces a contracting party to enter into a contract.” (2) 4. Consensus Parties: The free consent of parties is necessary for forming a valid agreement.

There are many types of Agreement, on the grounds of enforceability agreement has two types which are as follows: All agreements are valid agreements that are enforceable by a court of law. The agreements that can be enforced legally are valid agreements. According to Section 2(g) of the Indian Contract Act, 1872 and agreement is not enforceable by law is said to be void. Section 24 to 31 and 56 of the Indian Contract Act, 1872 lay down the provisions relating to the agreements which are declared void are as follows: If consideration and objects are unlawful in part. ( Section 24) Agreement without consideration(Section 25) Agreement in restraint of marriage (Section 26) Agreement in restraint of trade (Section 27) Agreement in restraint of legal proceedings (Section 28) Uncertain Agreements (Section 29) Wagering Agreement (Section 30)

Agreement contingent on an impossible event (Section 31) Agreement to do impossible acts (Section 56) Agreement to minor When both parties are under the mistake of law. All agreements are not enforceable by law and therefore, all agreements are not contracts. A contract is defined as “an agreement enforceable by law” in Section 2 (h) of The Indian Contract Act, 1872. An agreement between private parties creating mutual obligations enforceable by law. The basic elements required for the agreement to be a legally enforceable contract are mutual assent, expressed by a valid offer and acceptance; adequate consideration; capacity; and legality. The necessary elements for forming a legally enforceable contract are: 1. Offer: An offer is a proposal made by one party to the other party which expresses the willingness of the party to be bound on terms. 2. Acceptance: Acceptance means the offer has been accepted with the terms of the offer by the party to whom an offer was made. 3. Consideration: A Consideration is to be made by the parties after acceptance of the offer. 4. Intention: There must be a clear intention of both parties that the agreement is a legally binding contract. 5. Certainty: The terms or conditions of the contract must be clear and may be discussed between the parties and may be understood in the same manner by both parties. The terms or conditions should not be unlawful or unenforceable.

All Contracts are agreements as for the formation of a contract, an agreement is always necessary. There cannot be a contract where there is no agreement.

Without an agreement, a contract cannot be formed. Therefore, All Contracts are Agreements. Only those agreements become contract which gives rise to a legal obligation. If no legal duty is enforceable by an agreement, it can never be a contract. And hence agreement is a broader term than Contract. An agreement is regarded as a contract when it is enforceable by law. The conditions of enforceability are stated in S. 10 of the Indian contract act 1872. According to this section, an agreement becomes a contract when the agreement is made for some consideration between the parties which are competent to contract and are entering into Contract with their free consent and has a lawful objective. A lease agreement between two bodies corporate was held legal where it was signed by one only, representing both sides because he was a director in both the legal entities. [2] All agreements are contracts 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 expressly declared to be void. An agreement becomes a contract when the following conditions are satisfied:(i) There is some consideration for it. (S. 2(d) and S. 25) In return for accepting an offer and making a promise, consideration has to be made to make a valid agreement that could be enforceable by law and thus can become a valid contract. An agreement without consideration is void and it cannot form a valid Contract as a void agreement is not enforceable by law and every valid Contract is enforceable by law. For example, if a promises to give to B Rupees 10,000 without any consideration, it will be a void agreement. And in another example where A supports B’s infant...