LL.B(Hons.) and BJS Preparation Series-Question: What is an Agreement? Are All Agreements Contracts?
Question: What is an Agreement? Are All Agreements Contracts? Answer: Definition of Agreement An Agreement is a mutual understanding between two or more parties about their respective rights and duties regarding a particular matter. It is the meeting of minds (consensus ad idem) wherein one party makes a proposal (offer), and the other accepts it. Section 2(e) of the Contract Act, 1872 defines an agreement as : “Every promise and every set of promises, forming the consideration for each other, is an agreement.” Key Elements of an Agreement Offer/Proposal: One party makes a proposal to do or not do something. Acceptance: The other party accepts the proposal. Consideration: Something of value must be exchanged between the parties. Intention: Both parties must intend to create legal relations. Are All Agreements Contracts? No, not all agreements are contracts . While every contract is an agreement, not every agree...