On the other hand, an agreement is a written or oral contract between two or more parties, which is not imposed by law. A contract can only be prepared by legal and legal means, whereas it is not necessary to include the law or a legal person in the preparation of an agreement. A careful letter of the terms of a contract provides the court with a guide to the decision of the case when a party claims an offence. This helps the court determine the merits of the complaint and determine the correct remedy if a party fails to meet its obligations. There are different types of contracts that can be established, such as a contract. B between a lender and a debtor, a project management contract between the workers working on a project and the person who pays for the project. Otherwise, contracts can be service contracts, construction contracts and even marriage can also be a contract. Agreements are usually oral, and do not require registration, but some agreements can be drawn up in writing. However, if your friend gives you a deposit and agrees to pay you $50 per night to stay in your home, it`s a contract because you agreed to exchange a service (use of your home) for a consideration ($50 per night).
Your friends would have reason to complain if you accepted their payment, but they wouldn`t let them stay with you. A judge might imagine you staying in your home, or more likely, they will pay a reasonable fee related to their hotel stay. The scope of an agreement is broader than a contract, as it covers all types of agreement. On the other hand, the scope of a contract is narrower than an agreement, as it only covers the legal applicability agreement. Let us now understand the fundamental and particular differences between the agreement and the contract with respect to the Indian Contract Act of 1872. We learned from the above discussion that agreements are reached on the basis of mutual consent and trust between two parties. On the other hand, the treaty is legally an agreement with certain effects if the conditions decided are not met. A contract must contain and provide and accept all parties, this means that a contract cannot enter into force until an offer has been made by one party and (clearly) accepted by another party.