According to Section 2(e) of the Indian Contract Act, 1872, "Every promise and every set of promises forming the consideration for each other is an agreement".
A promises to B to sell his Laptop for Rs. 25,000/- and B accepts to purchase it for the said amount. here 'A' and 'B' entered into an agreement.
For the formation of an agreement there must be two or more persons / parties there must be a proposal from one person / party and acceptance from the other person / party. The person making the proposal is called the “Promisor”, and the person accepting the proposal is called “Promisee”
In the above example 'A' Promisor and 'B' is Promisee.
Types of Agreement
There are many types of Agreement, on the grounds of enforceability agreement has two types which are as follows :
A) Valid Agreement
B) Void Agreement
A) Valid Agreement :
Valid agreement is said to be valid if it can be enforceable in the Court of Law. Section 2(h) of the Indian Contract Act, 1872 says that, "an agreement enforceable by law is a contract"
B) Void Agreement :
According to Section 2(g) of the Indian Contract Act, 1872 an agreement is not enforceable by law is said to be void.
Section 24 to 31and 56 of the Indian Contract Act, 1872 lay down the provisions relating to the agreements which are declared void are as follows :
(i) If consideration and objects are unlawful in part. ( Section 24)
(ii) Agreement without consideration(Section 25)
(iii) Agreement in restraint of marriage (Section 26)
(iv) Agreement in restraint of trade (Section 27)
(v) Agreement in restraint of legal proceedings (Section 28)
(vi) Uncertain Agreements (Section 29)
(vii) Wagering Agreement (Section 30)
(viii) Agreement contingent on impossible event (Section 31)
(ix) Agreement to do impossible acts (Section 56)
(x) Agreement to minor
(xi) When both parties are under mistake of law.
All agreements are not enforceable by law and therefore, all agreements are not contracts.
1) Kinds of Contracts
2) Difference / Distinction between Contract and Agreement
3) Difference /Distinction between Void and Voidable Contracts
4) Rights and liabilities of lessor and lessee
5) Contingent Contracts