2. Difference between Contract and Agreement
Offer, Acceptance, Consideration
Free Consent, Alteration, Consideration
Kind of Contracts
Remedies for Breach of Contracts
Discharge of Contracts
Contract of Indemnity & Guarantee
Contingent Contract with Wagering Contract
Sec 2,10-21,37-67, 73-75,124-147
3. When one person signifies to another his
willingness to do or to abstain from doing
any thing with a view to obtaining the assent
of that other to such act or abstinence he is
said to make a proposal
A proposal and its acceptance is the
universally acknowledged process for making
an agreement
Sec 2(a)
4. When the person to whom the proposal is
made signifies the assent thereto, the
proposal is said to be accepted
A proposal when accepted becomes a
promise
Sec2(e)
5. Every promise and every set of promises
forming the consideration is an agreement.
Sec2(e)
7. When at the desire of the promisor, the
promisee or any other person has done or
abstained from doing or does or abstains
from doing or promises to do or to abstain
from doing something, such act or abstinence
or promise is called a consideration for the
promise.
Sec2(d)
8. Two or more persons are said to consent
when they agree upon the same thing in the
same manner
Sec 13
9. Consent is set to be free when it is not
caused by :-
◦ Coercion
◦ Undue Influence
◦ Fraud
◦ Misrepresentation
◦ Mistake
10. Difference Between Agreement and Contract
All contracts are agreement but all agreements are not contracts ,this is an ancient
statement but why it is so? Why an agreement is not equal to a contract?
Without recognizing it, we daily enter into the hundreds of agreement which do not
bound us legally. But, those agreements which have a legal binding is a contract.
Therefore, Contract Act, 1872 came into force. The act gives a base to all the
agreements and contracts. This act is applicable in all over the country .
Now let’s understand the basic and special differences between Agreement and
Contract with reference to Contract Act, 1872.
11. Basis of Comparison Agreement Contract
Meaning
When a proposal is accepted by the person
to whom it is made, with requisite
consideration, it is an agreement.
When an agreement is enforceable by law, it
becomes a contract.
Elements Offer and Acceptance Agreement and Enforceability
Defined in Section 2 (e) Section 2 (h)
In writing No May or may not be.
Legally Binding No Yes
Scope Commercial Purposes Social as well as commercial purposes.
Contract Vs Agreement
1.Comparison Chart
2.Definition
3.Key Differences
4.Similarities
5.Examples
6.Conclusion
Comparison Chart
12. Definition of Agreement
When a person (promisor) offers something to another person (promisee) and the proposal is accepted
by the concerned person with equivalent consideration, this commitment is known as the agreement.
When two or more than two persons agree upon the same thing in the same sense (i.e. Consensus ad
idem), this identity of minds is agreement. The following are the types of agreement are as under:
Wagering Agreement
Void Agreement
Voidable Agreement
Implied Agreement
Express Agreement
Conditional Agreement
Illegal Agreement.
It can also be defined as, the contract which lacks enforceability by law is known as the
agreement.
13. Definition of Contract
To be precise, a legally enforceable agreement for doing or not doing an act is known as a contract. A contract must contain these elements: Offer and Acceptance,
Adequate and Unconditional Consideration, Free Consent, Capacity, Lawful object, Certainity, Intention of creating legal obligations, and the Agreement should not be
declared void.
The contract may be oral or written. The major types of contract are as under:
Void Contract
Voidable Contract
Valid Contract
Unilateral Contract
Bilateral Contract
Express Contract
Tacit Contract
Contingent Contract
Implied Contract
Executed Contract
Executory Contract
Quasi Contract etc.
14. Key Differences Between Agreement and Contract
The following are the major differences between agreement and contract:
1. Promises and commitments forming consideration for the parties to the same
consent is known as an agreement. The agreement, which is legally enforceable is
known as a contract.
2. The agreement is defined in section 2 (e) while a Contract is defined in section 2 (h)
of the Contract Act.
3. A Contract includes an agreement. Conversely, an agreement does not include a
contract.
4. Generally, an agreements needs not to be given in writing, but the contracts are
normally written and registered.
The agreement does not legally bound any party for the performance. In the
Contract, the people are legally bound to perform
16. Examples
1. Mohsin and Rahim decided to go for a lunch on Sunday.
Mohsin did not come for lunch and this resulted in the
waste of Rahim’s time. Now Rahim cannot compel
Mohsin for the damages as the decision to go for the
lunch is not a contract but a domestic agreement.
2. Amer promises his younger brother Waseem to pay his
debts and the agreement was in writing as well as
registered. This is a valid agreement and can be
enforceable.
