Question

all contracts are agreement but not all agreements are contract. Elucidate the statement giving examples​

Answer 1

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$\underline{\large{\textsf{Contract :}}}$

• An agreement enforceable by Law is a contract.
• The agreement not enforceable by law are not contract.

$\underline{\large{\textsf{Agreement :}}}$

• An "agreement" means 'a promise or a set of promises' forming consideration for each other.
• A promise arrises when a proposal is accepted. By implication, an agreement is an accepted proposal.

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$\underline{\large{\textsf{All Contracts are agreements :}}}$

• All Contracts are agreements as for the formation of a contract, an agreement is always necessary.
• There cannot be a contract where there is no agreement.
• Without an agreement, a contract cannot be formed. Therefore, All Contracts are Agreements. 

$\underline {\large{\textsf{Not All agreements are contract :}}}$

• Only those agreements become contract which gives rise to a legal obligation.
• If no legal duty is enforceable by an agreement, it can never be a contract. And hence agreement is a broader term than Contract.
• 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 to be void.

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