« All contracts are agreements, but not all agreements are contracts. » This statement can be understood from the Venn diagram above. The agreements, which are enforceable under the law of the country, become contracts designated by the inner circle. The outer circle refers to agreements that are not contracts. The shady part includes agreements that are not enforceable by law and are referred to as non-legal agreements. Fraud: if, in the above case, Mr. Peela knew the actual colour of the car, but lied to Mr. Lal; fraud and such an agreement could have been annulled. The agreement does not legally bind the parties to the implementation of the agreement. However, in the case of a contract, the parties are legally required to do their part. The above conditions must be met for an agreement to be legally applicable. The agreement expires when one of these conditions is not met, unless, in the case of free consent, the agreement is not in arre between, rather than null and void, and the party whose consent was not free at the time of the conclusion of the contract gives the right to pursue the contract or not.
In the case of S.V. Narayanaswamy vs. Savithramma 2013R.F.A. No. 1163 of 2002 v R.F.A.No.1164 of Karnataka High Court, the complainant sought to prove the existence of an oral agreement on the sale of real estate, which was strongly alleged. With the complainant`s proof allowance, she did so by issuing cheques in several amounts for the entire estate consideration. In developing various pieces of evidence indicating the existence of a whole, the Tribunal confirmed the existence of the verbal agreement based on the examination of the evidence presented. Among the essential elements of an agreement is the offer and acceptance by the same person to whom it is submitted for appropriate consideration. However, in the case of a contract, the most important elements are an agreement and its legal applicability.
Meehika and Rahul decided to go to dinner on Friday night. When the day came, Rahul had to work overtime and was unable to meet Meehika. Meehika wasted precious time. In this regard, Meehika Rahul cannot sue for damages, because the decision to go to dinner is not a contract, but only a national contract. Under the 1872 Act, a valid oral agreement of value can be obtained in court. However, it is always difficult to prove the existence or exact terms of the agreement in the event of a dispute. There are certain types of contracts that are explicitly cancelled by the Indian Contracts Act of 1872. Here are some of the agreements that are not applicable in the eyes of the law: An agreement is reached between two or more parties. A contract is a particular type of agreement which, by its terms and elements, is legally binding and enforceable in court.
Meaning: A contract, however, refers to an agreement between two or more parties, which creates reciprocal obligations that can be imposed by law. To reach an agreement, the following elements are necessary: as long as a contract meets the above conditions, it is enforceable in court, which means that a court may compel a non-compliant party to comply with the terms of the contract.