A contract is a legally binding agreement or relationship that exists between two or more parties to perform or refrain from committing certain acts. A contract can also be defined as a legally binding exchange of promises between two or more parties, which the law will enforce. In order for a contract to be concluded, it is necessary to guarantee an offer that accepts it, which must be taken into account. Both parties must intend to establish legal relationships in a legal case that must be freely regulated and can be implemented. An agreement is a form of cross-reference between the different parties, written in writing, orally and based on the honour of the parties for their accomplishment, rather than being enforceable in one way or another. All contracts are an agreement because there must be mutual understanding between two parties for a contract to be concluded. “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. 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: some examples are given to better understand the term: thus, an agreement is longer than a contract. “All contracts are agreements, but not all agreements are treaties,” agreements of a moral, religious or social nature z.B., a promise to have lunch together with a friend or to walk around together are not contracts, because they probably do not create a legal duty, because the parties never wanted to end final consequences. These agreements are not concluded, which are based on one of the above themes. There is no liability for non-performance of the contract and, therefore, the terms of the contract are not binding on any of the parties. Such an agreement results in a specialty contract, which is a contract under the seal. All contracts are up to the avoidable and avoidable contract if one of the parties can withdraw if they wish.