Quote:
Originally Posted by rajasharjeel
every contract is an agreement but not every agreement is a contract
any one elaborate this statement please
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Asalam o Alaikum.
Dear Just keep these formulas in your mind for 'Contract Act':
Proposal (Offer) + Acceptance = Promise
Promise + Consideration = Agreement
Agreement + Enforceability by Law = Contract
"An agreement enforceable by law is a contract"
"Every promise or every set of promise forming consideration for each other is an agreement"
In the light of above rules and definitions, it is extracted that, there must be a valid agreement (valid offer, valid acceptance, lawful consideration and lawful object) that can be enforceable in the court of law, is a contract.
Whereas, solely an agreement without enforceability of law, is not a valid agreement;void agreement. Hence, it cannot fulfill the requirement of the contract.
Regards