All Contracts Are Agreements but All Agreements Are Not Contract
LAW OF CONTRACT
The Law of Contract is that branch of law which determines the circumstances in which promise made by the parties to a contract shall be legally binding on them. All of us enter into a number of contracts everyday knowingly or unknowingly. Each contract creates some right and duties upon the contracting parties. Indian contract deals with the enforcement of these rights and duties upon the parties.
Indian Contract Act, 1872 came into effect from 1st September, 1872. It extends after independence to whole Pakistan and known as “Contract Act, 1872”.
Contract law is based on the principles expressed in Latin phrase; “PACTA SUNT SERVANDA”. The meaning of this phrase is “agreements to be kept”, but more literary means “PACTA” is `must be kept`.
Agreement Is an Essential of a Valid Contract
1 – INTRODUCTION
A contract is an agreement between two parties that creates an obligation to do or refrain from doing a particular thing. The purpose of a contract is to establish the terms of the agreement by which the parties have fixed their rights and duties. Courts must enforce valid contracts, unless one party has legal grounds to bar enforcement. According to legal scholar Sir John William Salmond, a contract is “an agreement creating and defining the obligations between two or more parties”
2 – RELEVANT PROVISION
Section 3 – 12 of Contract Act, 1872.
3 – INTERPRETATION OF TERMS:
AGREEMENT [SECTION 2(e)]:
An agreement means, “Every promise or every set of promises, forming consideration for each other”.
AGREEMENT = PROMISE(S) BY ONE PARTY (+) PROMISE(S) BY THE OTHER PARTY
PROMISE [SECTION 2(b)]:
“When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal when accepted becomes a promise.”
PROMISE = PROPOSAL + ACCEPTANCE
PROPOSAL/OFFER [SECTION 2(a)]:
A person is said to make a proposal when “he signifies to another his willingness to do or to abstain from doing anything
The Law of Contract is that branch of law which determines the circumstances in which promise made by the parties to a contract shall be legally binding on them. All of us enter into a number of contracts everyday knowingly or unknowingly. Each contract creates some right and duties upon the contracting parties. Indian contract deals with the enforcement of these rights and duties upon the parties.
Indian Contract Act, 1872 came into effect from 1st September, 1872. It extends after independence to whole Pakistan and known as “Contract Act, 1872”.
Contract law is based on the principles expressed in Latin phrase; “PACTA SUNT SERVANDA”. The meaning of this phrase is “agreements to be kept”, but more literary means “PACTA” is `must be kept`.
Agreement Is an Essential of a Valid Contract
1 – INTRODUCTION
A contract is an agreement between two parties that creates an obligation to do or refrain from doing a particular thing. The purpose of a contract is to establish the terms of the agreement by which the parties have fixed their rights and duties. Courts must enforce valid contracts, unless one party has legal grounds to bar enforcement. According to legal scholar Sir John William Salmond, a contract is “an agreement creating and defining the obligations between two or more parties”
2 – RELEVANT PROVISION
Section 3 – 12 of Contract Act, 1872.
3 – INTERPRETATION OF TERMS:
AGREEMENT [SECTION 2(e)]:
An agreement means, “Every promise or every set of promises, forming consideration for each other”.
AGREEMENT = PROMISE(S) BY ONE PARTY (+) PROMISE(S) BY THE OTHER PARTY
PROMISE [SECTION 2(b)]:
“When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal when accepted becomes a promise.”
PROMISE = PROPOSAL + ACCEPTANCE
PROPOSAL/OFFER [SECTION 2(a)]:
A person is said to make a proposal when “he signifies to another his willingness to do or to abstain from doing anything