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    Business Law (Assignment 1) - 2

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    Ananya Raj Singh
    The document discusses the difference between agreements and contracts. An agreement refers to a verbal or written exchange of promises, which can be formal or informal. A contract is a legally binding agreement that is enforceable by law. For an agreement to be considered a contract, it must meet elements like free consent, contractual capacity, lawful consideration, and lawful object. While all contracts are agreements, not all agreements are contracts, as some agreements may not be legally enforceable. The law of contracts deals only with agreements that intend to create legal obligations, and is a subset of the broader law of agreements and obligations.

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    Business Law (Assignment 1) - 2

    Uploaded by

    Ananya Raj Singh
    18 views2 pages
    The document discusses the difference between agreements and contracts. An agreement refers to a verbal or written exchange of promises, which can be formal or informal. A contract is a legally binding agreement that is enforceable by law. For an agreement to be considered a contract, it must meet elements like free consent, contractual capacity, lawful consideration, and lawful object. While all contracts are agreements, not all agreements are contracts, as some agreements may not be legally enforceable. The law of contracts deals only with agreements that intend to create legal obligations, and is a subset of the broader law of agreements and obligations.

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    business law (assignment 1)-2

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    The document discusses the difference between agreements and contracts. An agreement refers to a verbal or written exchange of promises, which can be formal or informal. A contract is a legally binding agreement that is enforceable by law. For an agreement to be considered a contract, it must meet elements like free consent, contractual capacity, lawful consideration, and lawful object. While all contracts are agreements, not all agreements are contracts, as some agreements may not be legally enforceable. The law of contracts deals only with agreements that intend to create legal obligations, and is a subset of the broader law of agreements and obligations.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    18 views2 pages

    Business Law (Assignment 1) - 2

    Uploaded by

    Ananya Raj Singh
    The document discusses the difference between agreements and contracts. An agreement refers to a verbal or written exchange of promises, which can be formal or informal. A contract is a legally binding agreement that is enforceable by law. For an agreement to be considered a contract, it must meet elements like free consent, contractual capacity, lawful consideration, and lawful object. While all contracts are agreements, not all agreements are contracts, as some agreements may not be legally enforceable. The law of contracts deals only with agreements that intend to create legal obligations, and is a subset of the broader law of agreements and obligations.

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    © All Rights Reserved
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    of 2

    Q1. All contracts are agreements but all agreements are not contracts.

    Explain

    From the statement, “all contracts are agreement but all agreements are not
    contracts” as they are used interchangeably but they have different meanings.

    Meaning of agreement
    Agreement refers to a verbal or written exchange of promises between two or
    more parties. It is a meeting of the minds between the parties involved. An
    agreement can be formal or informal, written or verbal, express or implied.

    Meaning of contracts
    Section 2 (h) A contract, on the other hand, is a legally binding agreement that is
    enforceable by law. It is an agreement that creates legal obligations between the
    parties involved.
    For the contract to be valid, the following elements are
    1) Free consent (Section 10)
    2) Contractual capacity
    3) Lawful consideration
    4) Lawful object
    5) Certainty of terms and more

    Contract = Agreement + legal obligations

    picture

    I support the statement from the given above that all contracts are agreement but
    all agreements need not to be contracts because an agreement is considered as
    a contract when it is enforceable by law but in some cases an agreement may
    not enforceable by law therefore we can say that statement is true.
    For Eg. when you go to a restaurant and order food, you are making an
    agreement with the restaurant to provide you with food in exchange of payment

    CONCLUSION:
    The Indian Contract Act, 1872. The statement “All contracts are agreements, but
    all agreements are not contracts” is an important legal maxim that emphasizes
    the difference between agreements and contracts. An agreement is a meeting of
    the minds between the parties involved, while a contract is a legally enforceable
    agreement that creates legal obligations between the parties involved.

    Q2. The law of contracts is not the whole law of agreement nor is it whole law of
    obligation. Explain

    Definition of Law of Contract

    The Law of Contract is a body of law that governs agreements between parties. It
    includes legal rules that determine the conditions under which promises are
    binding and enforceable. It also defines the rights and obligations of parties to a
    contract. The law of contract is an essential part of the law of obligations and
    plays a crucial role in commercial transactions, employment relationships, and
    other areas of modern life.

    I agree from the statement given as Law of Contract is the law of only those
    agreements where the parties to the contract have the intention to create
    obligation to do or not to do something. Law of Contract is the law of only those
    obligations which arise out of agreements, it is not concerned with those
    obligations which do not arise out of agreements.

    For example: An agreement to do for a movie or picnic cannot create a contract,


    and therefore, no rights or obligation are created.

    Conclusion:

    The law of contracts is a subset of the broader law of agreements and


    obligations. While contracts deal with legally binding agreements, the law of
    agreements hold a wider range of arrangements, some of which may not result in
    enforceable contracts. Additionally, the law of obligations covers various legal
    duties beyond just those arising from contracts, such as torts and restitution

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