Essay Agreement Is Essential For A Contract

957 Words Dec 23rd, 2016 4 Pages
A contract is a legally binding agreement or relationship are exists between two or more parties to do or abstain from performing the certain acts. It must be offer and acceptance for a contract to be formed. An offer must agree by acceptance of which there must be consideration between both parties. Both parties involved must intend to create legal relationship between two parties on a lawful matter which must be entered into freely and should be possible to perform. According to S. 2 (h) , it said that “an agreement enforceable by law is a contract”.

An agreement is a form of cross reference between different parties, which may be in oral, written and lies upon the honor of the parties for its fulfillment rather than being in any way enforceable. According to S. 2 (e) , it said that “every promise and every set of promises, forming the consideration for each other, is an agreement”.

All contracts are agreements. Agreement is essential for a contract. There is no contract if without an agreement. It also be said “where there is contract, there is agreement without an agreement there can be no contract”. In other words, an agreement gives birth to a contract.

All agreements are not contracts. An agreement to become a contract must give rise to a legal obligation on it. It is not a contract if an agreement is incapable of creating a duty enforceable by law. Then an agreement is a wider term than a contract. Example, a promise to dinner together at a friend’s house is not…

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