7.
Explanation
An agreement starts from an offer and ends on consideration but a contract has to achieve another target i.e. enforceability. Due to this breach of the contract provide a legal remedy to the aggrieved party against the guilty party.
These agreements are not valid contracts. An agreement which does not create legal obligation is also not a contract. Thus all contracts are agreements but all agreements are not contracts. Offer and acceptance are the two basic elements which comprise an agreement
According to section 2 (h) of the Indian Contract Act, “an agreement enforceable by law is a Contract”. That is all agreements are not contract. An agreement, in order to become a contract must satisfy certain conditions which are the essential elements of a contract. For example, if an Agreement is not indented to create legal relationship, agreement not made with the free consent of The parties, agreement not made for a lawful object etc. These agreements are not valid contracts. An agreement which does not create legal obligation is also not a contract. Thus all contracts are Agreements but all agreements are not contracts.
OFFER AND ACCEPTANCE
Offer and acceptance are the two basic elements which comprise an agreement. One person makes An offer to another person, when the other person accepts that offer, it becomes an agreement.
Offer or Proposal
According to sec. 2 (a) of the Contract Act, “When one person signifies to another his willingness to do or abstain from doing anything, with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal.”
Offer is one of the essential elements of a contract. The person making the offer or proposal is called the offeror proposer or promisor and the person to whom the proposal is made is called ‘the propose’ or offeree.
Elements of an Offer:
1. In an offer one party must express his willingness for doing or not doing a thing
2. It must be made to another person
3. Offer is made with a view to know the assent of the other person.
4. There must be an intention to create legal relationship.
Example : X desire to sell his Car to Y for Rs. 3,00,000. it does not constitute offer, because X has merely expressed his desire. On the other hand if X asks Y would you buy my Car for Rs.3,00,000, this makes an offer, and here X is the offeror.
Classification of offer:
1. Specific offer: - When an offer is made to a specific person or class of persons, such offer is known as specific offer. The specific offer can be accepted only by that particular perrson or organization.
2. General offer: It is an offer which is made to a group of people or public at large. Such offer can be accepted by any member of that group.
3. Cross offer: - When two parties exchange identical offers with each other, in ignorance of each other’s offer, the offers are cross offer.
4. Counter offer: Incomplete and conditional acceptance of an offer is known as counter offer. In other words, when an original offer is rejected and a new offer is made, it is known as counter offer.
5. Standing offer (Tender):- An offer for a continuous supply of a certain article at a certain rate over a definite period is called a standing offer.
Conclusion: The distinction between agreements and contracts lies in enforceability. An agreement represents a meeting of minds between parties, while a contract is a subset of agreements that meets specific legal criteria and is legally enforceable. Therefore, while every contract is an agreement, not every agreement rises to the level of a contract. Understanding this distinction is essential in contract law to determine the rights and obligations of parties involved in various types of agreements.