Agreement & Contracts
Sushil
(Querist) 28 October 2010
This query is : Resolved
All contracts are agreements but all agreements are not contract? Explain?
pawan sharma
(Expert) 28 October 2010
Dear,
you read s.10 of the contract Act.
Futher this type of the Q you can asked to your Teacher not to this forum bcz we are spent our time for the needy persions who want to help through this way.
s.subramanian
(Expert) 29 October 2010
You can get it in Avtar Singh's book on Contract Act.
Parthasarathi Loganathan
(Expert) 29 October 2010
For the benefit of the querist, I repeat the Section 10 of Indian Contract Act 1872. What agreements are contracts
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. Nothing herein contained shall affect any law in force in India, and not hereby expressly repealed, by which any contract is required to be made in writing or in the presence of witnesses, or any law relating to the registration of documents.
R.Ramachandran
(Expert) 29 October 2010
An agreement which is enforceable by Law is a Contract. If an Agreement is not enforceable by law, it will only remain an agreement and it will not be regarded as a Contract.
To be a valid contract, there are several aspects to be satisfied like - the parties to the agreement must be majors; there should be an offer and the offer should be accepted by the other party; if the offer is accepted by the other party, the offer becomes a promise and the offerer becomes a promiser; for each promise there must be a corresponding promise i.e. each promise is a consideration for respective promise; failure to fulfil the promise would lead to legal action enforceable by law. The contract to be enforceable by law should be for lawful consideration and for lawful object.
In respect of a pure agreement which is not enforceable by law, none of the above conditions need to be satisfied.
For example, if some one calls me to his house with a promise to show me the latest movie on his newly acquired Plasma TV and I agree. This is an Agreement. But when I go to his house, I find his house locked. Can I sue him for breaking his promise? The obvious answer is a big NO because it is only a social agreement and none of us intended that in case if he is not in his house or for any other reason he does not show me the film, I will take legal action against him. Thus, it is a mere agreement not enforceable in court of law and therefore it is not a contract.
Take another instance, I agree with Mr. X that i shall murder B, provided Mr. X gives me Rs.1 crore. I commit murder, in case X does not give money can I sue him. The answer is a big NO because the object of the agreement is for unlawful purpose.
That is why it is said that All contracts (i.e. a legally enforceable agreement) are Agreements, but all Agreements are not Contracts.
