1. A Contract is defined under Sec.2(h).

2. A Contract is an agreement enforceable at law.

3. Its scope is limited.


4. Only valid agreement are called

5. A contract is enforceable.

6. A contract arises out of an agreement. Therefore, a contract includes an agreement.

7. A contract must have all the essentials of a valid contract like consideration, capacity, free consent, etc.



1. An agreement is defined under Sec.2(e)

2. Every promise or set of promises form­ing consideration for each other is an agreement.

3. Its scope is very wide.


4. An agreement and be both legal or illegal

5. An agreement may or may not be enforceable.

6. An agreement does not arise out of a contract. Therefore, an agreement does not include a contract.

7. An agreement has only an offer and its acceptance. It need not have other essentials.