Documente Academic
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Farzana Tazin
Lecturer,
Connected agreements May not necessarily be void, All connected agreements are void.
they may be valid also.
“All agreements are not contracts but all contracts are Agreement” Do you
agree? Justify your answer with examples.
Yes, I strongly support the statement “All agreements are not contracts, but all contracts are
agreement” due to the following logical reasons
A contract is a legally binding agreement or relationship that exists between two or more parties
to do or abstain from, performing certain acts. A contract can also be defined as a legally binding
exchange of promises between two or more parties that the law will enforce. For a contract to be
formed offer made must back acceptance of which there must be a consideration. Both parties
involved must intend to create legal relation on a lawful matter which must be entered into freely
and should be possible to perform.
An agreement is a form of cross-reference between different parties, which may be written, oral
and lies upon the honor of the parties for its fulfillment rather than being in any way enforceable.
All contracts are an agreement because there must be a mutual understanding between two parties
for a contract to be formed. All parties should agree and adhere to the terms and conditions of an
offer.
For a Contract to be there an agreement is essential; without an agreement, there can be no contract.
As stated above, an agreement to become a contract must give rise to a legal obligation. An
agreement is incapable of creating a duty enforceable by law. It is not a contract. Thus, an
agreement is a wider term than a contract.
Example: Considering person A buying a radio on hire purchase from person B who deals with
electronics and its appliances. Both parties must come to an agreement on payment of monthly
installment within specified period of time. Such an agreement result, to specialty contract which
a contract under seal. All contracts are agreement until avoided for example, avoidable contract
where one of the parties can withdraw from it if s/he wishes. “All contracts are agreements but all
agreements are not contracts,” Agreements of moral, religious or social nature e.g., a promise to
lunch together at a friend’s house or to take a walk together are not contracts because they are not
likely to create a duty enforceable by law for the simple reason that the parties never intended that
they should be attended by legal consequences.