QUESTION:An agreement between the parties is an essential

Business

1 answer:

Verizon [17]3 years ago

6 0

Answer:

Yes

All agreement are contract, but not all agreement are contract.

Explanation:

All agreement are contract, but not all agreement are contract. If an agreement fails to create legal obligation, then it cannot become a contract.

An agreement is created when there is a mutual understanding between parties. It can either be have a legal backing or not.

A contract is a written or express legally binding agreement between parties to perform a task or obligation.

For an agreement to become a contract, it must be legally binding between the parties. Just as in the case of (CARLILL V CARBOLIC SMOKE BALL CO (1893). It was held that no contract existed between the parties because the agreement is not enforceable under the law.

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