Why All Contracts Are Agreement But All Agreements Are Not Contract Explain


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To form an agreement, the following are required: Should these agreements be reduced to the written form and recorded. Legally, a contract is a legally binding agreement between two or more parties that, if it contains the elements of a valid legal agreement, is enforceable by law [3] or by binding arbitration. A legally enforceable contract is an exchange of commitments with specific remedies in case of breach. This may be a compensatory measure in which the defaulting party is required to pay funds that would otherwise have been exchanged if the contract had been complied with, or a fair remedy such as the specific service in which the person who entered into the contract is required to perform the specific act that he or she did not comply with. A null and void agreement has no legal effect. An agreement that does not satisfy the essential elements of the contract is null and void. An invalid contract does not confer any rights on anyone and does not create any obligation. Where both parties to an agreement make a material error of fact for the agreement [Article 20]; A contract is an agreement that creates and establishes liability between the parties. According to Article 2b of the Contracts Act, a legally enforceable agreement is a contractual agreement. It is therefore clear that the contract consists of two elements: • An agreement • The agreement must be legally enforceable.

For the conclusion of a contract, it is very important that the consideration and the object of the contract are lawful. The consideration or object is considered illegal if – Undue influence: The teacher has asked the students that whoever pays their Rs. 200, this student will receive the full grade in the viva. Now, the teacher was in a fiduciary relationship with the students and took unfair advantage of such a position. Thus, such a contract, which the teacher avoids for the student, is questionable on the part of the students. EXPRESSLY DECLARED NULLITY AGREEMENT THERE ARE CERTAIN AGREEMENTS THAT ARE EXPRESSLY DECLARED NULL AND VOID. They are: (1) Consent of a minor or a person with an unhealthy mind. [sec.11)] (2) Agreement the consideration or object of which is unlawful [§ 23)] (3) Agreement concluded on the basis of a bilateral error of fact in the agreement [§ 20)] (4) Agreement the consideration or object of which is partially unlawful and the unlawful part cannot be separated from the legal part [§ 24)] (5) Agreement concluded. without consideration.

[sec.25)] (6) Agreement restricting marriage [§ 26]] (7) Agreement restricting trade [§ 27]] (8) Agreement restricting legal proceedings [§ 28]] (9) Agreements of uncertain importance [§ 29]] (10) Agreements by way of bet [§ 30]] (11) Agreements dependent on impossible events [§ 36]] (12) Agreements on impossible acts [§ 56] In addition, where a father concludes an agreement with his son, that the father gives him a new bike when the son reaches 105% on his exams. It is considered an invalid agreement because it is an agreement to make an impossible action…

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