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.


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


Share this article :
Blogger Tips and TricksLatest Tips And TricksBlogger Tricks

FB Page

 
@ELITE_Mv
Copyright © 166/A-1/2017/19. ELITE Institute - All Rights Reserved