This PPT will help in understanding meaning and difference between agreement and contract. further, it will provide essential elements of a valid contract. And at the end, it will classify the contract.

1. Indian
Contract
Act, 1872
By: Adv. SONA SONI
Adv. Sona Soni

2. Agreement
 Acc. to Sec. 2(e) Every Promise or Set of
Promises forming consideration for each
other is an agreement.
 Agreement = Offer + Acceptance
2(e) = 2(a) + 2(b)
 Acc. to Sec. 2(b) When the person to
whom the Proposal is made signifies his
assent thereto, the proposal, the proposal
is said to be accepted. A Proposal, when
accepted become Promise
Adv. Sona Soni

3. Contract
 Acc. to Sec. 2(h) An agreement which is
enforceable by law is contract.
Contract= Agreement + Enforceability
2(h) = 2(e) + 10
 A Contract is an exchange of promise or
promises between two or more persons, to
do or not to do, an act which is
enforceable by law.
Adv. Sona Soni

4. Differences
Agreement Contract
 When a proposal is
accepted by the person
to whom it is made, is an
agreement.
 Sec. 2 (e)
 Offer + Acceptance
 Do not create legal
relation
 Social agreement, legal
agreement.
 When an agreement is
enforceable by law,
becomes contract.
 Sec 2(h)
 Agreement + Enforceability
 Creates legal relation
 Always legal
Adv. Sona Soni

5. Sec. 10 Essential Elements of Valid Contract
 Two or more parties
 Offer and Acceptance
 Intention to create legal relation
 Lawful Consideration
 Capacity of parties
 Free consent
 Lawful Object
 Legal formalities
 Certainty
 Possibility of performance
 Not expressly declared void
Adv. Sona Soni

6. 2 & more
parties
Offer &
Acceptanc
e
Legal
relation
Capacity of
parties
Free
consent
Lawful
object
Legal
Formalities
Certainty
Possibility
of
performanc
e
Not
declared
void
Adv. Sona Soni
Quick recap

7. Classification of Contracts
1. On the Basis of Validity
 Valid Contract
 Void Contract
 Voidable Contract
 Illegal Contract
 Unenforceable Contract
Adv. Sona Soni

8. Classification of Contracts
2. On the basis of Formation
 Express Contract
 Implied Contract
 Quasi Contract
 E-Contract
Adv. Sona Soni

9. Classification of Contracts
3. On the basis of Performance
 Executed Contract
 Executory Contract
 Partly executed and partly executory
 Unilateral Contract
 Bilateral Contract
Adv. Sona Soni

10. Thanking you
Adv. Sona Soni