09-03-2012, 03:29 PM
all agreements are not contracts
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AGREEMENTS AND CONTRACTS As
per the Indian contract act "Every promise or every set of promises, forming consideration for each other, is an agreement".
A contract is a legally binding agreement which is enforceable at law. An agreement is one of the essential element of a contract
Difference between contracts and agreements
Every promise and every set of promise forming consideration for each other is an agreement. An agreement enforceable at law is a contract.
An agreement is a sum total of offer and acceptance. Contract is the agreement and its enforceability by law.
Certain agreements may not create any legal obligation such as social or moral agreements. While on the other hand contracts necessarily create legal obligations.
An agreement is not always a concluded or binding contract. A contract is always concluded or binding on the concerned parties.
All agreements are not contracts because they may not posses some of the essential elements of a valid contract. But in contrast, all contracts are agreements, because the agreement is the beginning of a contract.
CONCLUSION
All agreements become enforceable by law when it fulfills certain conditions, that is essential elements of valid contract under section 10. An agreement in order to become a contract must satisfy conditions, the essential elements of contract. They are agreement and legal obligation. Only agreements must be enforceable by law, the agreement which give rights to a social or moral obligation is not at all a contract. So all agreements are not contracts.
