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The Indian Contract Act, 1872: Types, Differences & Acceptance

What is a Contract According to the Indian Contract Act?

What Are the Different Types of Contracts Based on Validity?

What is the Difference Between an Agreement and a Contract?

There are several differences between an agreement and a contract. However, primarily an agreement is equivalent to an offer and acceptance. Besides the differences are provided in a tabular format below:





An agreement is an acceptance of an offer provided by a party to the other.

A contract is a legal bond or a written document between two or more individuals or parties that form a mutual obligation. There can be legal repercussions if a contract has not been followed or completed.


Agreement equals offer and acceptance

A contract must include considerations, legality, offer and acceptance along with mutual assent.


As per Section 2(e) of the Indian Contract Act, 1872, 'Every promise and every set of promises, forming the consideration for each other, is an agreement.

As per Section 2(h) of the Indian Contract Act of 1872, a contract is ‘an agreement enforceable through the law.'


The scope of the agreement is more comprehensive than a contract.

The scope of a contract, on the other hand, is a portion of the formal document which encompasses all the criteria and parameters involved between two individuals or parties.


An agreement can have various forms other than writing.

A contract is usually written and registered.


It does not create any legal obligation. The agreement is dependent on the free will and consent of the parties involved.

A Contract, on the contrary, is legally binding.


Possess higher risk as the law doesn't enforce it.

It has low risk as it abides by the law.

Acceptance of the Indian Contract Act

FAQs About The Indian Contract Act, 1872