The Meaning of Agreement

The act of approving or disapproving through written communication is called Agreement. Agreements is the state of agreeing or deciding mutually the opinion of both or all the Parties involved and means that all the Parties accept the opinion.

As per section 2 (e) of Indian Contract Act, ‘Every promise and every set of promises, forming the consideration for each other, is an agreement’.

Ingredients:

1. Parties: There shall always be two or more Parties to an Agreement.
2. Offer/ Proposal: When one person signifies to another person his willingness to do or omit something.
3. Acceptance: When the person signifies his assent to the other person
4. Promise: when the proposal is accepted by a second party, it becomes a promise
5. Consideration: It is the way of returning one’s price for the act or omission.

Void Contracts:

1. Some contracts which are not enforceable by the law are considered as null and void.
2. Agreements in restraint of trade or marriage
3. Agreements in restraint of legal proceedings
4. Agreements by wager
5. Agreements contingent or impossible event

For example, if Paro would have been asked by Devdas to not get married for her entire life, then he will give her a new dress and shoes in return; it cannot be considered as a valid contract because the agreement is made in restraint of marriage.

Above mentioned conditions required to fulfill the scenarios 

The agreement becomes null and void if any of the mentioned conditions are left unfulfilled or incomplete except in the case of free consent where

Voidable Contract:

The agreement becomes voidable instead of void and, where consent was not free at the time of entering into the contract, the discretion to continue the contract or not lies with the Party with whom default or omission has been committed

Are contracts and Agreements the same?

Basis for Comparison	Agreement	Contract
Meaning	An agreement is made when a proposal by one party is accepted by other Party with lawful consideration.	A contract is made when an agreement becomes enforceable in the eyes of law.
Elements	Offer & Acceptance between the Parties	Agreement and Enforceability under law
Defined in	Section 2(e) of Indian Contract Act	Section 2(h) indian Contract Act
In writing	Not mandatory	Usually written and registered form
Legal obligation	There is no legal obligation.	legal obligation by parties involved.

An agreement is basically the first stage in the contract development process. An agreement can be termed to in a contract, but an agreement itself isn’t legally enforceable without the contract.

Lead India’s excellent lawyers can draft any type of Contracts for you depending upon your need and it can be very well negotiated by our team of specialist lawyers with other parties.