An enforceable agreement or contract is a binding agreement. A law-free contract has no legal effect. An illegal contract, such as the nullity contract, has no legal value between the direct parties, but it has the effect of ensuring that the transactions are tainted with illegality and thus become enforceable. This article was written by Anjali Dhingra, IInd Jahr Student, B.B.A. LL.B, Symbiosis Law School, NOIDA. In this article, the author discusses contracts and agreements and the difference between the two. The article also discusses what contracts are and what is not. Contract – According to Section 2 (h) of the Treaty Act in India, “a legally enforceable agreement is a contract.” The Indian Contract Act of 1872 can be interpreted as covering all possible agreements and contracts. However, in many cases, whether or not an agreement is a contract depends on the facts and circumstances. In short, all legally enforceable agreements become contracts. As a result, there may be agreements that are not contractual, but there cannot be contracts that are not agreements.
“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. As noted above, an agreement on the conclusion of a contract must be subject to a legal obligation. If an agreement is not legally applicable. It is not a contract. A contract is a legally binding agreement that exists between two or more parties to do or not to do something. An agreement begins with an offer and ends for compensation, but a contract must achieve another objective, that is, applicability. As a result of this violation, the aggrieved person can appeal against the culprit.
So we can say that all contracts are an agreement, but not all agreements are contracts. “All contracts are contracts, but not all contracts are contracts” There are certain types of contracts that are expressly cancelled by the Indian Contract Act of 1872. Here are some of the agreements that, in the eyes of the law, are not applicable: an agreement that must not be legally enforceable by the parties, but which must be executed or respected for a matter of friendship or honour.