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Krina Patel   05 March 2020

contracts and agreements

all contracts are agreements,but all agreements are not contracts.commemt?


 8 Replies

Jamshed JkRose   05 March 2020

Agreement =offer+aceptance

Joy Bose   05 March 2020


A contract is defined under section 2(h) of Indian Contract Act - “An agreement enforceable by law is a contract” which in itself gives us the fact that all contracts have to be an agreement. There will be no contract if there is no agreement.

Whereas all agreements are not contracts because 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. It is not a contract. Thus an agreement is a wider term than a contract. For example, you make an agreement with your friend that if you do his work then he will be giving you a treat, there is no legal obligation here so it cannot be considered as a contract.

Joy Bose

G.L.N. Prasad (Retired employee.)     06 March 2020

Search in google for hundreds of such cases with explanations and case law for your academic interest.

Kishor Mehta (CEO)     06 March 2020

In effect there is no difference between an Agreement and a Contract if properly stamped, executed and registered. 

Dr J C Vashista (Advocate)     07 March 2020

An "agreement" is accepted, signed and executed (if reduced in writing, however, it can be oral as well) it is a "contract" which create legal right and obligation on both the parties.

Dr J C Vashista (Advocate)     07 March 2020

What is the actual problem and facts of the case/ dispute involving an "agreement" to be a "contract" ??

Allen Archer   08 March 2020

In business, contracts are important because they outline expectations for both parties, protect both parties if those expectations aren't met and lock in the price that will be paid for services.

heather tesch

Raj Kumar Makkad (Adv P & H High Court Chandigarh)     10 March 2020

Go through the following judgment wherein the difference in both terms has cleearly been decided with the help of case laws.

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