S.No
|
BASIS FOR
COMPARISON
|
AGREEMENT
|
CONTRACT
|
1
|
DEFINITION
|
When a proposal is accepted by the person to whom it is
made, with requisite consideration, it is an agreement
|
A contract is an agreement which is legally
enforceable.
|
2
|
BASIC
DIFFERENCE
|
Every Agreement is not a contract.
|
Every Contract is an Agreement.
|
3
|
ENFORCE ABILITY
|
An Agreement is not enforceable by Law.
|
A contract is enforceable by Law.
|
4
|
INGREDIENTS
|
The agreement is itself an ingredient of a Contract and has no
ingredients of its own as such.
|
A Contract has seven ingredients.
1. Agreement
2. Legal
Purpose
3. Lawful
Consideration
4. Capacity
to Contract
5. Consent
to Contract
6. Lawful
Object
|
5
|
FORMALITY
|
An agreement is an informal document.
|
A Contract is a formal document.
|
6
|
TYPE
|
An agreement could be verbal or written.
|
A Contract has to be in writing.
|
7
|
SCOPE
|
Wide
|
Narrow
|
Distinguish between agreement and contract
August 28, 2019
We may or may not have heard about the statement “all
contracts are agreements, but all agreements are not contracts”. We may be confused between the two
since share the same purposes, but keep in mind that they are also very
different.
Labels:
BBA24 Business Law,
Contract Law,
MIC