Offer + accetance = agreement or accpetance

Do not confuse on this. What is an "Agreement" ? In simple terms, when two or more persons, mutually agree to do something OR abstain from doing something, its an Agreement, here everyone is promising to do or abstain from doing something.  SO an Agreement is a promise to do or not to do something and is the base of the Agreement.

"Consideration", in whatever form or promise, is again a Part and element of an Agreement.

And when any Agreement, by its terms and conditions, becomes legally binding and simultaneously enforceable in a Court of Law, it is called a CONTRACT.

And thats why its commonly said that All Contracts are Agreements BUT its not necessary that All Agreements are Contracts. :-)

Thanks & Regards

Advocate Abhishek Sinha

Mumbai

+91-7045949997 

Dear Sir,

Section 2 (h) of the Indian Contract Act, 1872 says that an agreement enforceable by law is a contract. 

Section 2 (e) provides the definition of agreement as every promise and every set of promises forming consideration for each other. 

Section 2 (b) defines promise as when the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal, when accepted becomes a promise. 

From these definitions, it is clear that:

a contract is an agreement;

an agreement is a promise 

and 

a promise is an accepted proposal. 

OFFER + ACCEPTANCE= PROMISE 

                                                  +

                                          CONSIDERATION= AGREEMENT

                                                                                   +

                                                                          ENFORCEABILITY BY LAW= CONTRACT

Regards,

Zeta