The terms “agreement” and “contract” are often interchangeable in general usage, but supreme law dictionaries offer two different definitions. An agreement is a far-reaching approach that involves any agreement or agreement between two or more parties on their rights and obligations. Such informal agreements often take the form of “gentlemen`s agreements”, in which compliance with the terms of the agreement is based on the honour of the parties concerned and not on external means of implementation. The terms “agreement” and “contract” are used interchangeably, but legally they are two different things. An agreement is simply an agreement or agreement between two or more parties. A contract is a specific agreement with conditions that can be imposed by the courts. An agreement cannot be obtained in court through litigation because it does not have the elements of a contract. It has absolutely no legal value, although this is often the beginning of contract negotiations. The main advantage of an agreement that does not meet the criteria of a contract is that it is by nature informal. If contractors have a long-standing relationship and share a considerable degree of trust, the application of a contract can save time and flexibility in fulfilling agreed commitments. Agreements that do not contain all the necessary elements of the contract may also be more feasible in situations where contracting would impose a prohibitive burden on the parties concerned. Thus the Indian Contract Act came into force, which was put into effect by the British government because it decided India at that time. The law provides a basis for all agreements and contracts.
This law was applicable throughout the country, except in the state of Jammu- Kashmir. There is an old statement: “All contracts are an agreement, but not all agreements are contracts,” which means that the agreement is different from a contract. Without knowing it, we make hundreds of agreements every day that may or may not be legally engaged.