A contract is a legally enforceable agreement between two or more parties that creates an obligation to do or not to do certain things. The sources of contract law are generally governed and enforced by the laws of the state in which the agreement was concluded. Depending on the purpose of the contract (i.e. the sale of property, real estate credit), one of the two types of state law can govern a contract: the common law: most contracts (i.e. employment contracts, leases, general operating contracts) are “All contracts are contracts, but not all contracts are contracts.” This statement can be understood from the Venn diagram above. The agreements, which are enforceable under the law of the country, become contracts designated by the inner circle. The outer circle refers to agreements that are not contracts. The shady part includes agreements that are not enforceable by law and are referred to as non-legal agreements. The Indian Contract Act of 1872 can be interpreted as covering all possible agreements and contracts. However, in many cases, whether or not an agreement is a contract depends on the facts and circumstances.
In short, all legally enforceable agreements become contracts. As a result, there may be agreements that are not contractual, but there cannot be contracts that are not agreements. “All contracts are contracts, but not all contracts are contracts” A contract is a legally binding agreement or a relationship between two or more parties to perform or refrain from committing certain acts. A contract can also be defined as a legally binding exchange of promises between two or more parties, which the law will enforce. In order for a contract to be concluded, it is necessary to guarantee an offer that accepts it, which must be taken into account. Both parties must intend to establish legal relationships in a legal case that must be freely regulated and can be implemented. An agreement is a form of cross-reference between the different parties, written in writing, orally and based on the honour of the parties for their accomplishment, rather than being enforceable in one way or another.