Dear Friends,
I am sharing with you the difference between agreement and contract. Often, people make mistakes in understanding the actual difference between these two terms. These two terms are very confusing, and I am trying to clarify here to some extent.
Contract - According to section 2(h) of the Indian Contract Act, 'an agreement enforceable by law is a contract.' Hence, every agreement and promise enforceable by law is a contract.
Agreement - According to section 2(e) of the Indian Contract Act, 'Every promise and every set of promises forming the consideration for each other is an agreement.' When there is a proposal from one side and the acceptance of that proposal by the other side, it results in a promise. This promise from the two parties to one another is known as an 'agreement.' As noted above, an agreement enforceable by law is a contract.
All such agreements that satisfy the conditions mentioned in section 10 of the Indian Contract Act are contracts. Section 10 is as follows: '10. 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 hereby expressly declared to be void.'
For the validity of a contract, section 10 requires the following essentials to be satisfied:
1. There should be an agreement between two parties. An agreement arises when one party makes a proposal or offer, and the other party accepts the offer.
2. The parties to the agreement should be competent to contract.
3. There should be lawful consideration and a lawful object concerning the agreement.
4. There should be free consent of the parties when they enter into the agreement.
5. The agreement must not be one that has been declared to be void.
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From India, Mumbai
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24I am sharing with you the difference between agreement and contract. Often, people make mistakes in understanding the actual difference between these two terms. These two terms are very confusing, and I am trying to clarify here to some extent.
Contract - According to section 2(h) of the Indian Contract Act, 'an agreement enforceable by law is a contract.' Hence, every agreement and promise enforceable by law is a contract.
Agreement - According to section 2(e) of the Indian Contract Act, 'Every promise and every set of promises forming the consideration for each other is an agreement.' When there is a proposal from one side and the acceptance of that proposal by the other side, it results in a promise. This promise from the two parties to one another is known as an 'agreement.' As noted above, an agreement enforceable by law is a contract.
All such agreements that satisfy the conditions mentioned in section 10 of the Indian Contract Act are contracts. Section 10 is as follows: '10. 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 hereby expressly declared to be void.'
For the validity of a contract, section 10 requires the following essentials to be satisfied:
1. There should be an agreement between two parties. An agreement arises when one party makes a proposal or offer, and the other party accepts the offer.
2. The parties to the agreement should be competent to contract.
3. There should be lawful consideration and a lawful object concerning the agreement.
4. There should be free consent of the parties when they enter into the agreement.
5. The agreement must not be one that has been declared to be void.
Hi, don't forget to provide your feedback.
From India, Mumbai
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