Share Meaning of Contract: Section 2 h of the Indian Contract Act, defines a contract as an agreement enforceable by law. In other words, an agreement which can be enforced in a court of law is contract.
It is a valid and true statement. Before we can critically examine the statement, it is necessary to understand the meaning of agreement and contract. According to section 2 a "every promise on every set of promises forming the consideration for each other an agreement.
It is fact an agreement is a proposal and its acceptance, by which two or more person or parties promises to do abstain from doing an act. But a contract according to section 2 h of the Indian Contract Act, "An agreement enforceable by law is a contract.
It is clear these definitions that the there elements of a contract ore a Agreement Contractual Obligation b Enforceability by Law. X invites his friend to tea and the latter accepts the invitation. This is a social agreement not a contract because it does not imply any legal obligation.
We can say that a All contracts are agreements, b But all agreements are not contracts. A 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.
Another essential element of a contract is the legal obligation for the parties to the contract, there are many agreements that do not entail any legal obligations. As such, these agreements cannot be called contracts.
A gives his car to B for repair and B asks for Rs. A agrees to pay the price and B agrees to repair the car.
The agreement imposes an obligation on both. The third element of a contract is that the agreement must be enforceable by Law.
If one party fails to keep his promise, the other has the right to go the court and force the defaulter to keep his promises.
There are other elements are:We can say that: (a) All contracts are agreements, (b) But all agreements are not contracts. (a) All Contracts are Agreements For a Contract to be there an agreement is essential; without an agreement, there can be no contract.
As. All contracts are agreements, but all agreement are not contractsAnswer; A contract is a legally binding agreement orrelationship that exists. All Contracts Are Agreement but All Agreement Are Not Contracts All contracts are agreement but all agreement are not contracts Answer; A contract is a legally binding agreement or relationship that exists between two or more parties to do or abstain from performing certain acts.
Jul 04, · All contracts are agreements but all agreements are not contracts. Explain this statement. Ads.
INTRODUCTION: No doubt it is a valid and true statement. Before critically discussing the statement, we must know the exact and basic meanings of the two terms contract and agreement in the context of business law.
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. All agreements are not necessarily legally enforceable. It can rightly be said that an agreement has a much wider scope than a contract.
For example that agreements are not legally binding are an invitation to dinner or to go for a walk and its acceptance. These are agreements not contracts.