ALL AGREEMENTS ARE NOT CONTRACTS

As per the Indian contract act "Every promise or every set of promises, forming consideration for each other, is an agreement". A contract is a legally binding agreement which is enforceable at law. An agreement is one of the essential element of a contract.

AGREEMENTS AND CONTRACTS

Difference between contracts and agreements

Every promise and every set of promise forming consideration for each other is an agreement. An agreement enforceable at law is a contract. An agreement is a sum total of offer and acceptance. Contract is the agreement and its enforceability by law. Certain agreements may not create any legal obligation such as social or moral agreements. While on the other hand contracts necessarily create legal obligations.

An agreement is not always a concluded or binding contract. A contract is always concluded or binding on the concerned parties.
All agreements are not contracts because they may not posses some of the essential elements of a valid contract. But in contrast, all contracts are agreements, because the agreement is the beginning of a contract.

ELEMENTS OF CONTRACTS

Offer and acceptance Intention to create legal relationship Lawful consideration Capacity of Parties Free consent Lawful object

Not declared to be void Possibility of performance Writing and Registration

SECTION 2(h)

Section 2(h) of Indian Contract Act defines a contract as a agreement enforceable by law. When we analyze this definition we find that a contract has two distinct parts. First, there must be a agreement. Secondly, such an agreement must be enforceable by law

Two persons are required for a contract and the agreement must be such as is enforceable by law and the agreement which give rights to a social or moral obligation is not a contract Examble - X invited Y for a treat. Then Y accepts the offer but X did not give the treat to Y. Then Y cannot claim any compensation from X as the agreement is a social one

CONCLUSION

All agreements become enforceable by law when it fulfills certain conditions, that is essential elements of valid contract under section 10. An agreement in order to become a contract must satisfy conditions, the essential elements of contract. They are agreement and legal obligation. Only agreements must be enforceable by law, the agreement which give rights to a social or moral obligation is not at all a contract. So all agreements are not contracts.