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.
Hi dont forget to provide your feedback.
From India, Mumbai
24I 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.
Hi dont forget to provide your feedback.
From India, Mumbai
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