Difference Between Contract And Contract

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Contract and agreement are comparable, but there are some decision have to be a compromise with the parties. Conversely, all agreements are not contracts there are some difference between agreement and contract. With the statement of Section 2 (h) Contract Act 1950, an agreement apply with law is a contract. (Law Teacher, 2017) A contract is compulsory with agreement and relationship with the parties, and a contract is also a promise which is the promise between each other impose by the law. There are 6 elements of the contract which is offer, acceptance, and intention to create legal relations, consideration, certainty, and capacity, all this are important to form a legal contract. Offer is one of the element to form a legal contract, offer must communicate and accept. According to Section 2(a) of the contracts Act 1950 is an offer “when one person signifies to another his willingness to do or abstain from doing anything, with a view to obtaining the assent of that other to do such act or abstinence. (Law notes, 2017) In the case study of Chapelton v…show more content…
Example of the case study is Simpkins V Pays (1955) Simpkins and her granddaughter and plaintiff often join the competition in newspaper. But all the prize will be get by Simpkins. When the competition is victorious, Simpkins is refused to share with plaintiff. So plaintiff sue Simpkins. So the court carry out the mutual arrangement, it legally-binding agreement to share with plaintiff. (Law Teacher , 2017) And regarding to business and commercial there is presumption for intention legal relations. Based on the case study, Rose & Frank Co. Vs Crompton Bros. Ltd. An agreement between these two companies which is Rose& Frank Co employ by Crompton Bros. Ltd. As an agent to their companies but the agreement is not legal and formal so is not binding and legally enforceable. (Shah,
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