"All Agreements are not

Contracts, but all Contracts

are Agreements."
ASMEE JANAN ANKA
ID: 1122320005
INTRODUCTION
Contract: Section 2(h) of the Indian Contract Act provides
that,
“An Agreement enforceable by law is a contract".
Therefore in a
contract there must be-

An agreement and
The agreement must be enforceable by law.

Agreement: An agreement is a promise or

commitment given by one party to another party.
"Every promise and every set of promises,
forming the consideration for each other, is an
agreement-Sec. 2(e).
To form an Agreement, the following ingredients are required

a proposal by one party to another

to enter into a legally binding
proposal is accepted, it
agreement with him
becomes a promise
OFFER/
PROMISE
PROPOSAL
2 4

1 3 5

CONSIDERATION
PARTIES ACCEPTANCE a promise, performance, or
tow or more parties. an act or implication that
forbearance bargained by a
the promisee and the provides an acceptance of an
promisor in exchange for their
promisor offer which then forms a
promise
binding contract.
 All Contracts are Agreements but all
Agreements are not Contracts

Agre
eme
Agre
Contract nts The agreements which are
eme
nts
s enforceable under the law of the
enfor
ceabl
land become contracts, which are
e by
law
denoted by the inner circle. The
Void
able
outer circle denotes the
Agre agreements which are not
eme
Agree nts contracts. The shaded part
ment
s not includes agreements which are not
enfor
ceabl enforceable by law and are known
e by
law
as void agreements.
The concept of Voidable Contracts

Competency of Parties

Voidable Free Consent of Parties

Contracts
Lawful Consideration & object

Not expressly declared to be void

 FREE CONSENT
1 Coercion
threats of serious harm to or physical restraint against any
person

2 Undue
there must be a special relationship between the parties, and
Influence
this special relationship can be actual or presumed
3
Misrepresentat
a false statement of a material fact made by one party which
ion
affects the other party's decision in agreeing to a contract
4
Fraud
the active concealment of a fact by one having knowledge or
belief of the fact
5 Mistake
an erroneous belief, at contracting, that certain facts are true
The Essential Elements of
Contract
Offer and Acceptance

Intention to create Legal Relationship

Lawful Consideration

Capacity of Parties

Free Consent

Legality of the Object

Certainty

Possibility of Performance

Void Agreements

Writing, Registration and Legal Formalities

CONCLUSION
The elements mentioned above must all be
present. If any one of them is absent, the
agreement does not become a contract. An
agreement which fulfils all the essential
elements is enforceable by law and is called
a contract. From this it follows that, every
contract is an agreement but all agreements
are not contracts.
Thank You…