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pawan arora (student)     12 January 2010

difference between contract and agreement?

hi everyone

plz someone tell me the major difference between contract and agreement and



Learning

 15 Replies

Suchitra. S (Advocate)     12 January 2010

An agreement enforciable by law is a contract. So, all contracts are agreements but all agreements are not contracts.

V. VASUDEVAN (LEGAL COUNSEL)     12 January 2010

 ALL AGREEMENTS ARE CONTRACTS IF THEY ARE MADE BY THE FREE CONSENT OF PARTIES COMPETENT TO CONTRACT, FOR A LAWFUL CONSIDERATION AND WITH A LAWFUL OBJECT AND ARE NOT EXPRESSLY DECLARED (IN THE CONTEXT OF THE INDIAN CONTRACT ACT) TO BE VOID 

CS Pooja (Company Secretary)     15 January 2010

As replied by Ms. Suchita, all contracts are agreements but all agreements are not contracts.

Hence, contract is a refined version of agreement.

To drive home the idea, we can say, "We have reached an agreement and will now enter into a contract"

Suresh CSLLM (Service)     15 January 2010

Its apparent if you read Indian Contract Act and its very clearly mentioned in every commentrary / contract books.

kranti (lawyer)     16 January 2010

contract is a binding legal agreement that is enforceable in a court of law.

kranti (lawyer)     16 January 2010

 An Agreements may be legal or may not be legal.

Adesh Kumar Sharma (Senior Associate Lawyer)     25 January 2010

My Dear Friend,

To know the major difference between the agreement and contract, I would suggest you to go through the provision of section 2(e) and 2(Hon'ble Court) of the Indian Contract act, 1872.

 Section 2(e): Every promise and every set of promise, forming the consideration for each other, is an agreement.

Section 2(h): An agreement enforceable by law is a contract.

The phrase “forming consideration for each other” relates to the words “set of promise” and does not qualify “every promise”. Therefore, a promise is an agreement without consideration. The fact that the consideration is not necessary element for making an agreement is seen from the language of Section 10 and 25 of the Contract act, 1872, though it is necessary for making it enforceable.  

But if this agreement is not enforceable by law then it does not become contract but it becomes void. There may be many conditions in an agreement, and complied with the conditions prescribed therein, by the parties make the agreement enforceable under the law i.e. a Contract and non-compliance would render the agreement void.  

For example:

Where a document has all features of an agreement to sell, it would constitute a contract between the parties.

You can say that every agreement, which can be enforced under the law is a contract.

A contract qua contract, however, must be consensual. It must meet the statutory requirements and reasons under the provisions of the Indian Contract Act. When a contract is entered into by and between the parties, what is determinative is enforcement of the terms and conditions to be governed by the contract, subject, of course, to the application of the statute and statutory provisions. Whereas a statutory contract would be governed by a statute, other contracts would not.

I hope you can understand the difference between the agreement and contract.

Thanking you.

1 Like

Adesh Kumar Sharma (Senior Associate Lawyer)     25 January 2010

its section 2 (h)  of the Indian Contract Act, 1872, in place of 2 (Hon'ble Court)..

TVD Rajkumar (Advocate)     29 January 2010

 Mr. Pawan,

Had you read the Contract Act in the first place, Iam asking b'cox your query seems very general...

Suchitra. S (Advocate)     30 January 2010

Dear lodha Sir, members of this forum are smart enough to answer such an easy query. Why you are suggesting to go somewhere else.. ?  :)

Gundlapallis (Advocate)     31 January 2010

Ms. Suchitra

Who is Mr. Lodha? I dont see anyone answered this thread as such !

Suchitra. S (Advocate)     31 January 2010

Mr. Lodha has been banned from the forum and admn has removed all his posts... only mine is there now...  his post was there earlier to my post in this thread..   :)


(Guest)
The main difference between in contract and agreement is enforceability.An agreement cannot be enforced in court of law whereas a contract can be enforced.

M/s. Y-not legal services (Advocate)     10 April 2012

Originally posted by :Gundlapallis
" Ms. Suchitra
Who is Mr. Lodha? I dont see anyone answered this thread as such !
"

"all contracts are agreements.. but agreements can not be contracts"

 

and miss. tabassum., "an agreement which is enforceable by law between two peoples its called contract"..

 

-tom-


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