Dear Friends, I am sharing with you the difference between agreement and contract. Often peoples make mistakes in understanding the actual difference between these two terms. Thes two terms are very confusing. I am trying to clear here at 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 promise forming the consideration for each other is an agreement. When there is a proposal from one side and the acceptance of that proposal by 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 agreement which satisfy the conditioned mentioned in sec 10 of Indian contract Act are contracts. Section 10 is as under-- 10. all agreements are contract 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 contract section 10 requires the following essentials to 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 excepts the offer. 2- The parties to the agreement should be competent to contract. 3- There should be lawful consideration and lawful object in respect of the agreement. 4- There should be free consent of the parties,when they enter in to agreement. 5- The agreement must not be one,which has been declared to be void.
Posted on: Thu, 20 Nov 2014 10:10:40 +0000
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