All Contracts Are Agreements But All Agreements Are Not Contracts, there is no doubt that this statement is true. This statement has been propagated by Anson who emphasizes that there is no contract without an agreement.

All contracts are agreements. Is this statement true? Let's see, to constitute a valid contract, it is essential to have an agreement and without an agreement, there is no contract. This means, before the existence of the contract there should exist an agreement.

Are all agreements are contracts? an agreement to become a valid contract must give a rise to legal enforceability. If an agreement is incompetent in creating a legal obligation, then it is not a contract. Thus an agreement is a wider term than a contract.

To form a contract from an agreement, the agreement must fulfil some conditions and essential elements required for the formation of valid contract examples. So, all agreements are contracts is a false statement.

What Agreements Are Contracts? Section 10 of Indian Contract Act, 1872 provides, “All agreements are contracts if they are made by the free consent of the parties, competent to contract, for a lawful consideration and with a lawful object and not hereby declared to be void.”