Brief Notes (Conceptual)
Terms used in this Essay
the person who offers something or some work etc.
the person to whom something or work is offered.
the person who promises to give, pay or do something.
the person to whom the promise is made.
the person who accepts the promise
what ever is given in return of something (a house in return of money, money in return of a house)
Definition of Agreement:
Every promise or every set of promises forming the consideration for each other is an agreement.
Definition of Contract:
An Agreement enforceable by law is a contract.
For every contract there should always be an “agreement”. The agreement is the first step to the
contract. The agreement can be legal or illegal, but the agreement that converts into a contract
should be legal. For example, John promises to Jack for the delivery of two packets of drugs.
Now this is an agreement, but it is not legal. And for the contract, the agreement should be legal.
Illegal work, tasks cannot form into a “contract”. For the agreement and contract there should
always two or more than two persons. One man cannot enter into any agreement or into a contract
Types of Agreement:
1. Social Agreements (does not create any legal relation and obligation)
2. Legal Agreements (creates a certain legal relation and obligation)
1. Social Agreements
Social agreements are social in nature and they are not enforceable by law. For example, Mr. Ali
invites Mr. Bilal to his birthday party and Mr. Bilal promises. Now there is agreement between
Mr. Ali and Mr. Bilal. Now if Mr. Bilal does not come to the party, Mr. Ali cannot go to the court
that this man did not come to my birthday party. Another example can be that Mr. Ali promises
Mr. Bilal to pick him up from his home. But Mr. Ali forgets; now Mr. Bilal cannot go to the
2. Legal Agreements
Legal agreements are bound by law. Mr. Ali promises Mr. Bilal that he will sell his house for th