It can also be defined that the contract, which is not applicable by law, is referred to as an agreement. Although the agreements do not contain all the legal elements of a contract, they are even more viable because they do not weigh on the parties involved. Let us now understand the fundamental and particular differences between the agreement and the contract with respect to the Indian Contract Act of 1872. To reach an agreement, the parties only have to agree on their relative rights and obligations, often referred to as the “meeting of minds.” Contracting requirements are more precise and relatively stringent. A contract should contain the following essentials: For example, you offer to let your friends stay in your home while they are in the city. It is an agreement because there is no consideration exchange for the use of your home, and there are no conditions that have been written to comply with them. Your friends can`t sue you if you change your mind and charge them for a hotel. To be exact, a legally enforceable agreement is called on the facts or no contract. A contract must contain the following elements: offer and acceptance, reasonable and unconditional consideration, free consent, capacity, legitimate purpose, security, intention to create legal obligations, and the agreement should not be declared null and void. There is an old statement: “All contracts are an agreement, but not all agreements are contracts,” which means that the agreement is different from a contract. Without knowing it, we make hundreds of agreements every day that may or may not be legally engaged.
Those that bind us legally are called contracts, while the rest is an agreement. The two words of agreement in relation to the contract are often used for the same purpose, but there are a number of differences between the two. A contract can be defined as a verbal or written agreement between two or more parties and is fully enforced by law. The main advantage of contracts is that they clarify the terms on which the parties have agreed and, if violated, they can serve as a guide to the Court of Justice. A contract provides some certainty that contractual commitments will be honoured as planned. Contracts offer additional protection and are recommended in any official or commercial matter. There are different types of contracts that can be established, such as a contract. B between a lender and a debtor, a project management contract between the workers working on a project and the person who pays for the project. Otherwise, contracts can be service contracts, construction contracts and even marriage can also be a contract.