All Contracts Are Agreements but All Agreements Are Not Contracts

In: Business and Management

Submitted By amalajk
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ALL CONTRACTS ARE AGREEMENTS BUT ALL AGREEMENTS ARE NOT CONTRACTS

1 – INTRODUCTION
A contract is an agreement between two parties that creates an obligation to do or refrain from doing a particular thing. The purpose of a contract is to establish the terms of the agreement by which the parties have fixed their rights and duties. Courts must enforce valid contracts, unless one party has legal grounds to bar enforcement
The Law of Contract is that branch of law which determines the circumstances in which promise made by the parties to a contract shall be legally binding on them. All of us enter into a number of contracts everyday knowingly or unknowingly. Each contract creates some right and duties upon the contracting parties. Indian contract deals with the enforcement of these rights and duties upon the parties.
Indian Contract Act, 1872 came into effect from 1st September, 1872. It extends after independence to whole Pakistan and known as “Contract Act, 1872”.
Contract law is based on the principles expressed in Latin phrase; “PACTA SUNT SERVANDA”. The meaning of this phrase is “agreements to be kept”, but more literary means “PACTA” is `must be kept`.
"An agreement enforceable by law is a contract. It is clear these definitions that the there elements of a contract ore
(a) Agreement Contractual Obligation
(b) Enforceability by Law.
For Example: X invites his friend to tea and the latter accepts the invitation. This is a social agreement not a contract because it does not imply any legal obligation.
We can say that (a) All contracts are agreements, (b) But all agreements are not contracts. (A) All Contracts are Agreements

Agreement Is an Essential of a Valid Contract
Definition
Section 2(h) of the Indian Contract Act defines the term contract as “any agreement enforceable by law”
Section 2(e) defines agreement as “every promise and every…...

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