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Indian contract act 1872

What does an agreement exactly mean?? Can a promise be an agreement?? Or only set of promises forming consideration for each other constitute an agreement??


VIJAYA SARADHI MAGANTI

VIJAYA SARADHI MAGANTI

CA Foundation

850

23-Aug-20 10:24

39

Answers (12)

Proposal+Acceptance=Promise Promise+Consideration=Agreement Agreement+Legal Enforcability=Contract


Nithish Kumar

Nithish Kumar

CA Inter

5K+

23-Aug-20 11:56

Proposal+Acceptance=Promise Promise+Consideration=Agreement Agreement+Legal Enforcability=Contract

In the definition of agreement it is given that every promise and set of promises forming consideration for each other is an agreement. Which can be understood as that every promise can be an agreement. Can anyone please clarify this??


VIJAYA SARADHI MAGANTI

VIJAYA SARADHI MAGANTI

CA Foundation

850

23-Aug-20 12:42

Generally if A invited B for dinner and B accepts it then it can be understood as agreement where there is no reciprocal promises forming consideration each other. But they are constituted as social agreements. Is my understanding is correct relating to the concept of agreement??


VIJAYA SARADHI MAGANTI

VIJAYA SARADHI MAGANTI

CA Foundation

850

23-Aug-20 12:45

In social agreements there will be no mutual consideration for each other but they are called agreements For example A invites B for dinner and B accepts it. Here there is no mutual consideration but we are calling it as social agreement but not as social promise


VIJAYA SARADHI MAGANTI

VIJAYA SARADHI MAGANTI

CA Foundation

850

26-Aug-20 11:48

Social agreements are not contracts because parties are not intending to create legal obligations but this is not my actual doubt is.... Without mutual consideration in social agreements how do they refer it as agreements and why not social promises


VIJAYA SARADHI MAGANTI

VIJAYA SARADHI MAGANTI

CA Foundation

850

26-Aug-20 12:15

Where the contract is of a social nature, the law is assumed that the both parties did not indent their agreement legally binding

Here I am not asking about validity of contract I am referring to validity of agreement. Please clarify this mam...


VIJAYA SARADHI MAGANTI

VIJAYA SARADHI MAGANTI

CA Foundation

850

26-Aug-20 12:20

Here I am not asking about validity of contract I am referring to validity of agreement. Please clarify this mam...

Agreement is a wider term, it includes both legal and social agreement. It need not create a legal obligation between parties. Social agreements are not enforceable due to lack of legality


ruchi lahoti

ruchi lahoti

Moderator

26-Aug-20 12:45

Only the set of promises forming considerations for each other can constitute an agreement... In simple words Proposal when accepted becomes a promise and that promise becomes an agreement with formation of consideration for each other


Sam World

Sam World

CA Foundation

10K+

26-Aug-20 12:46

Only the set of promises forming considerations for each other can constitute an agreement... In simple words Proposal when accepted becomes a promise and that promise becomes an agreement with formation of consideration for each other

But definition of agreement if you refer to the act Sec 2(e) states that " Every promise and set of promises, forming consideration for each other is an agreement." That it includes every promise also... Constitutes agreement.


VIJAYA SARADHI MAGANTI

VIJAYA SARADHI MAGANTI

CA Foundation

850

26-Aug-20 13:24

Agreement is a wider term, it includes both legal and social agreement. It need not create a legal obligation between parties. Social agreements are not enforceable due to lack of legality

Thank you mam!!! If I refer to the English contract act there is nothing like the term promise defined in it. They just stated that " An offer when accepted becomes an agreement. But in indian contract act they created a word promise and defined it in the act, which led me into confusion.


VIJAYA SARADHI MAGANTI

VIJAYA SARADHI MAGANTI

CA Foundation

850

26-Aug-20 13:29

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