Agreement vs Contract 📜

Scenario:

• Raj invites Simran to dinner. Simran accepts.
• Raj doesn't show up. Can Simran sue him? No. (Social Agreement).
• Raj offers to sell his car to Simran for ₹5 Lakhs. Simran accepts.
• Raj refuses to sell. Can Simran sue him? Yes. (Legal Contract).

The Golden Rule: "All Contracts are Agreements, but all Agreements are NOT Contracts."

Definitions 📖

1. Agreement (Section 2(e)): "Every promise and every set of promises, forming the consideration for each other."

   • Formula: Offer + Acceptance = Agreement.

2. Contract (Section 2(h)): "An agreement enforceable by law."

   • Formula: Agreement + Legal Enforceability = Contract.

Essentials of a Valid Contract (Section 10) 🌟

For an agreement to become a contract, it must have:

1. Offer and Acceptance: Two parties agreeing on the same thing in the same sense (Consensus ad idem).
2. Intention to create Legal Relations: (Balfour vs Balfour case).
3. Lawful Consideration: Something in return (Quid pro quo).
4. Capacity of Parties: Age of majority, sound mind, not disqualified.
5. Free Consent: Not caused by coercion, undue influence, fraud, etc.
6. Lawful Object: Not illegal or opposed to public policy.
7. Certainty: Meaning must be clear.
8. Possibility of Performance: Cannot promise to discover treasure by magic.

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Quiz Time! 🎯

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💡 Final Wisdom: "A contract is the bridge between a 'Promise' and the 'Law'. Without that bridge, a promise is just words." 🌉

Next up: Types of Contracts - Valid, Void, and Voidable! 🚦