contracts and agreements

Hello,

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.

Regards,
Joy Bose

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

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

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.

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

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

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