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As per the Indian contract act "Every promise or every set of promises, forming consideration for each other, is an agreement". A contract is a legally binding agreement which is enforceable at law. An agreement is one of the essential element of a contract.
An agreement is not always a concluded or binding contract. A contract is always concluded or binding on the concerned parties.
All agreements are not contracts because they may not posses some of the essential elements of a valid contract. But in contrast, all contracts are agreements, because the agreement is the beginning of a contract.
ELEMENTS OF CONTRACTS
Offer and acceptance Intention to create legal relationship Lawful consideration Capacity of Parties Free consent Lawful object
SECTION 2(h)
Section 2(h) of Indian Contract Act defines a contract as a agreement enforceable by law. When we analyze this definition we find that a contract has two distinct parts. First, there must be a agreement. Secondly, such an agreement must be enforceable by law
Two persons are required for a contract and the agreement must be such as is enforceable by law and the agreement which give rights to a social or moral obligation is not a contract Examble - X invited Y for a treat. Then Y accepts the offer but X did not give the treat to Y. Then Y cannot claim any compensation from X as the agreement is a social one
CONCLUSION
All agreements become enforceable by law when it fulfills certain conditions, that is essential elements of valid contract under section 10. An agreement in order to become a contract must satisfy conditions, the essential elements of contract. They are agreement and legal obligation. Only agreements must be enforceable by law, the agreement which give rights to a social or moral obligation is not at all a contract. So all agreements are not contracts.