Business Studies, asked by natashadasshona, 1 year ago

All contracts are agreements but all agreements are not contracts.Comment

Answers

Answered by ItzShrestha41
3

Explanation:

A contract is a legally binding agreement that exists between two or more parties to do or not do something. Due to this breach of the contract provide a legal remedy to the aggrieved party against the guilty party. So we can say that all contracts are an agreement but all agreements are not contracts

Answered by dreamrob
8

Contract = Agreement + Enforceability

Agreement = Offer + Acceptance

Therefore, Contract = Offer + Acceptance + Enforceability by law

According to Section 2, the Contract Act, “An Agreement enforceable by law is a contract.

According to Section 10, All agreements are considered to be contracts if and only if they are made by the acceptance of the parties, competent to contract, for a legal contemplation and with a legalized object, and not hereby particularly declared to be void.

So, we can say that an Agreement is the first step of a valid Contract.

Essential elements of a valid contract:

  • Agreement (Offer and acceptance)
  • Legal relationship
  • Capacity of parties
  • Free consent
  • Lawful object
  • Lawful consideration
  • Certainty
  • Possible to perform
  • Not declared as void

If any of the elements are not fulfilled then the Agreement cannot be termed as a Contract.

Therefor, we can say that Agreement is a broad term and is any agreement fulfill all the essential elements then it become a Contract.

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