every contract is an agreement but not every agreement is a contract
every contract is an agreement but not every agreement is a contract :cr
any one elaborate this statement please |
[QUOTE=rajasharjeel;707218]every contract is an agreement but not every agreement is a contract :cr
any one elaborate this statement please[/QUOTE] 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 |
[QUOTE=abdulsalam88;707222]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[/QUOTE] Agreement is wide term while contract is specie of agreement hence contract is a narrow term.Contract is that agreement which is enforceable by law but on other hand agreement is a set of promises forming consideration for each other.Last but not the least contract is a legal term while agreement is not necessary to be legal it may social or political. |
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