As long as the goods or services delivered are legal, any verbal agreement between two parties may constitute a binding legal contract. However, the practical restriction in this regard lies in the fact that only the parties to a written agreement usually have substantial evidence (the written contract itself) to prove the conditions actually expressed at the time of conclusion of the contract. In everyday life, most contracts can and are concluded orally, such as for example. B the purchase of a book or a sandwich. Sometimes written contracts are required either by the parties or by legal law in different jurisdictions, for certain types of agreements, for example when buying a house or land. “All contracts are agreements, but not all agreements are contracts.” This statement can be understood in the Venn diagram above. Agreements applicable under the laws of the country become contracts designated by the inner circle. The outer circle refers to agreements that are not contracts. The shaded portion includes agreements that are not enforceable by law and are referred to as unenforced agreements. Betting contract: In Mumbai presidential betting contracts are illegal by law, and corrupt collateral transactions invalidate the subjects.
In the rest of India, betting contracts are void and therefore warranty contracts are not affected. Case: Jones v/s Padavllon: Where a young girl left the service for legal training, with her mother`s promise to bear the costs. It was seen as a family affair and not as a binding contract. Thus, we can say that not all agreements are contracts, but not all treaties are agreements. All such agreements that meet the requirements set out in Section 10 of the Indian Contracts Act are contracts. Section 10 is like under – Such an agreement is the result of a special contract that has a contract under seal. All contracts are agreements until they are avoided, for example.B avoidable contracts for which one of the parties may, at his request, resign from them. This is due to minor agreements and misrepresentation or unacceptable influence. Taking into account a case in which person A concludes a contract with person B but acknowledges, during the term of contract B, that he has been entrusted with the execution of an agreement under unlawful influence.
Definition of Contract: According to Section 2(h) of the Indian Contract Act: “A legally enforceable agreement is a contract. . . .