Question

There has been a long-standing debate within the business, finance and accounting industry the world over that suggests that all contracts are agreements but not all agreements can be said to be contracts. From the discussion in class and available literature, examine this assertion that ‘All contracts are agreements but not all agreements are contracts’, justifying your position with case law and examples in an attempt to settle this long-standing debate within the industry as it is long overdue.

Answer 1

Answer) All contracts are agreements but not all agreements are not contracts. This statement is correct. A contract is basically an enforceable agreement between two parties or groups that is backed by law . It means that one party offers something and if the other party accepts that by any act or response, it is considered a contract which is enforceable in the eyes if law that means if any party breaches the contract,they can face lawsuit. So the contract is an agreement , but every agreement is not contract and enforceable under law. An agreement is just a mutual consent of two parties over a common agenda or perspective. We come into thousands of agreements into each day for example- If me and my friend , wants to go to movie tomorrow. Its an agreement between us two about the time ,date and venue we will meet at. But if my friend cancels the plan, I can't sue him . This may rise to some moral problems but not legal problems because there was no monetary benefit involved. If there was some monetary benefit involved such as I get into a agreement with a flat owner to get flat on rent at a certain price. But then he increased the price, it will be considered as an oral contract , though oral contracts are very difficult to proove , yet as money has been involved ,this has become a contract.