project
KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY
INSTITUTE OF DISTANCE LEARNING-KOFORIDUA CENTER
BARCHELOR OF BUSINESS ADMINISTRATION
BUSINESS LAW
QUESTION: ALL CONTRACT ARE AGREEMENT BUT NOT ALL AGREEMENT ARE CONTRACT, DISCUSS.
NAME: FAUSTINA OWARE KORANTENG
ID NO. 20284299/8654912
The Contract Act, 1872, provides the definition of contract. According to section 2 (h) of the Contract Act, 1872, “An agreement enforceable by law is a contract.”
If we analyze the definition of the contract mentioned above, we get two fundamental characteristics or features, viz.-
(i) Agreement between the parties and
(ii) This agreement must be enforced by law.
So agreement is the first step of contract. But after making agreement, it may be enforceable by law or may not be enforceable at law. If that agreement is enforced by law then it will be treated or turned into contract, But if the agreement is not enforced by law that will not be treated as a contract but merely an agreement. So all contracts are agreement, but all agreements are not contract.
For example: - A minor “X” has agreed to sell an apartment that he has inherited to his father, to another person named “Y”. Here, this will be called agreement but not a contract. Because according to the law of contract, a minor is not capable of entering into a contract. So this agreement is not enforced by law. But from the definition of contract we know- every agreement enforced at law is a contract. So, all contracts are agreement but all agreements are not contract.
Unlawful consideration may create agreement but not a contract:-
Section 2(e) provides that- every promise and every set of promises, forming consideration for each other, is an agreement.
Apart from this, section 2(a) and 2(b) provides that “When one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to such act
INSTITUTE OF DISTANCE LEARNING-KOFORIDUA CENTER
BARCHELOR OF BUSINESS ADMINISTRATION
BUSINESS LAW
QUESTION: ALL CONTRACT ARE AGREEMENT BUT NOT ALL AGREEMENT ARE CONTRACT, DISCUSS.
NAME: FAUSTINA OWARE KORANTENG
ID NO. 20284299/8654912
The Contract Act, 1872, provides the definition of contract. According to section 2 (h) of the Contract Act, 1872, “An agreement enforceable by law is a contract.”
If we analyze the definition of the contract mentioned above, we get two fundamental characteristics or features, viz.-
(i) Agreement between the parties and
(ii) This agreement must be enforced by law.
So agreement is the first step of contract. But after making agreement, it may be enforceable by law or may not be enforceable at law. If that agreement is enforced by law then it will be treated or turned into contract, But if the agreement is not enforced by law that will not be treated as a contract but merely an agreement. So all contracts are agreement, but all agreements are not contract.
For example: - A minor “X” has agreed to sell an apartment that he has inherited to his father, to another person named “Y”. Here, this will be called agreement but not a contract. Because according to the law of contract, a minor is not capable of entering into a contract. So this agreement is not enforced by law. But from the definition of contract we know- every agreement enforced at law is a contract. So, all contracts are agreement but all agreements are not contract.
Unlawful consideration may create agreement but not a contract:-
Section 2(e) provides that- every promise and every set of promises, forming consideration for each other, is an agreement.
Apart from this, section 2(a) and 2(b) provides that “When one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to such act