The answer lies in the distinction between agreements and contracts. So what is an agreement? First, a promise is an offer from one party that has been accepted by another party (under paragraph 2(b) of the Indian Contracts Act, 1872 or ICA). Every organization depends on all types of contracts, with customers and merchants, with suppliers of goods and services, with owners, with employees, banks, lenders and more. While verbal agreements can be used in many relationships, there are many business situations where managers and business owners need to use a written contract, not only to ensure that the parties understand their obligations transparently, but also to have a binding contract. A written contract helps business relationships to contracts and agreements are interconnected in several ways. Contracts mean the agreement of certain issues, whether or not they are national or international aspects of agreements. In a broader sense, [1]The contract is an agreement between two or more competent parties in which an offer is made and accepted and each party benefits from it. The agreement can be formal, informal, written, oral or simply understandable. Some contracts must be in writing to be performed. Examples of contracts include a lease, promissory note or lease.

[2] According to the jurist Sir John William Salmond, a contract is “an agreement that establishes and defines the obligations between two or more parties” In the above cases, the agreement becomes questionable by the aggrieved party because consent was not free. This article was written by Anjali Dhingra, first-year student, B.B.A. LL.B, Symbiosis Law School, NOIDA. In this article, the author discusses the contract and agreements and the difference between the two. The article also deals with agreements that are contracts and those that are not. According to section 2(h) of the Indian Contract Act 1872, “is a legally enforceable agreement a contract?” This means that these agreements are legally enforceable, they are contracts that others are not. For example, an agreement to sell a bike may be a contract, but an agreement to go to the movie may be a simple agreement that is not legally enforceable. Going to the cinema is a social agreement and social agreements are not legally enforceable. For an agreement to become a contract, it must create a legal obligation, and if it is not able to do so, it is not a contract. In Balfour v Balfour [1919] 2 KB 571, Mr Balfour promised to pay his wife £30 a month because she was in England for medical reasons.

When he didn`t pay, Ms. Balfour sued him. Their action failed because there was no intention to create a legally binding agreement between Mr. and Mrs. Balfour. A contract may not be concluded without proper indication of the legal rights and obligations of the contracting parties. So, if it was a contract, then the wife would have had the right to receive a payment, and the husband would have had the obligation to pay his wife. As long as the goods or services provided are legal, any oral agreement between two parties may constitute a legally valid contract. However, the practical limitation is that, in general, only the parties to a written agreement have material evidence (the written contract itself) to prove the actual conditions expressed at the time of conclusion of the agreement.

In everyday life, most contracts can and are concluded orally, for example .B purchase of a book or sandwich. Sometimes written contracts are required either by the parties or by law in different jurisdictions for certain types of agreements, for example. B when buying a house[6] or land. So let`s discuss this statement in detail with examples and cases. defines a contract as a legal agreement between people, companies, etc., a document on which the words of a contract are written and/or: an agreement to kill a person for money (Webster, 2016). A contract is what binds verbal agreements to written agreements that may hold either of them liable for the terms set out in a contract. Although there are written contracts, some can be held liable in court and cannot be held responsible. There are several things that are important for a contract “All contracts are agreements, but not all agreements are contracts” Agreements of a moral, religious or social nature. B for example a promise to have lunch together in a friend`s house or to walk together are not contracts, as they are unlikely to create a legally enforceable obligation, for the simple reason that the parties never intended to be visited by them. Consequences. Fraud: if, in the above-mentioned case, Mr Peela knew the actual colour of the vehicle but lied to Mr Lal; then he would have been guilty of fraud and such an agreement would have been questionable.

Let`s look at some examples where agreements are not contracts: The law recognizes that legally binding contracts can be written, oral, or a mix of both. However, for commercial purposes, written contracts are generally preferred for the following reasons: • The content (“Terms”) is visible in writing to all • You can ensure that precise language is used when describing the terms of the contract • So there is less scope for misunderstandings and conflicting assumptions • There is less need to rely on reminders of what, What was originally agreed As you can see from the diagram, questionable contracts can be either valid contracts or void contracts. The red circle indicates that these can be valid or invalid contracts. Questionable treaties are provided for in sections 15 to 22 of the Indian Contract Act 1872. There is no liability for non-performance of the contract and, therefore, the terms of the contract are not binding on either party. Some agreements under the ICA have been expressly cancelled, such as.B. an agreement without consideration (Article 25), an agreement concluded as a result of a bilateral error (Article 20), agreements restricting the trade or marriage of a person other than a minor or judicial person (Articles 26, 27 and 28). In addition, the object of the contract cannot be impossible (§ 36) and it cannot be a bet (§ 30). CONTRACT LAW Contract law is the branch of law that determines the circumstances in which the promise made by the contracting parties legally binds them. We all knowingly or unconsciously enter into a series of contracts every day. Each contract establishes certain rights and obligations for the contracting parties.

The Indian contract deals with the application of these rights and obligations to the parties. The Indian Contract Act of 1872 came into force on September 1, 1872. It extends after a contract is a legally enforceable agreement between two or more parties that creates an obligation to do or not to do certain things. The sources of contract law are generally regulated and enforced by the laws of the State in which the agreement was concluded. Depending on the subject matter of the contract (i.e. the purchase of property, real estate leasing), one of two types of state law may regulate a contract: The common law: The majority of contracts (i.e. employment contracts, rental contracts, general commercial agreements) are for a contract to be valid, all elements of a valid offer, a valid acceptance, a valid agreement and a valid consideration must be completed. For example, Raja goes to Rani`s house to ask for her hand in the arranged marriage.

Her parents agree, but she remains silent. They take their silence as a sign of shyness, calling it acceptance because girls are often oppressed in Indian society and are not asked for their consent in marriage. Socially and culturally, this has become the norm, but it is not allowed by law because the law requires that the freely consenting parties accept explicitly or implicitly. And silence is neither express nor implied consent. In the present case, the hypothesis was not valid because silence is not a hypothesis (as in McGlone v. Lacey, 288 F.Supp 662 (D.S.D. 1968) and Felthouse v. Bindley (1863) 7 L T 835) and, consequently, the essential points of an agreement have not been fulfilled, so that it is not a contract. In case of invitation to treatment; by which an invitation to treatment is simply an invitation to submit an offer. If a company`s offer is accepted, this will give rise to a contract, provided that other parts of the contract are accepted. According to the Venn diagram, the outer circle is an agreement, and if the agreement is legally enforceable, it becomes a contract, that is, an inner circle. In contract law, some contracts are enforceable by one party and the other party does not have the capacity to perform the contract, these contracts are called voidable contracts.

And the red circle is about questionable contracts. An agreement between spouses reached during a divorce regarding custody, maintenance of the child and spouse, division of property and other matters. .