Business Law Business Enforcement

Question: Describe about the Business Law for Business Enforcement. Answer: The statements that all contracts are agreements, not all agreements are a contract is true. A contract is an agreement that is legally binding in nature or a link that is developed between various parties to perform a certain activity or abstain from doing it. An offer is required to be supported by consideration (Beatson et.al 2010). Mr. X promises to sell a house for Rs 10 lakhs and Mr. Z promises to purchase that. Therefore all contracts are agreements where it is essential that an agreement must be present. Without the presence of an agreement, a contract cannot happen. In short, it can be said that an agreement provides the way for a contract. An agreement is simply a point of cross reference between the parties who are related. This can be in the form of oral, written and depend on on the whims of the parties. However, all agreements cannot be termed as contracts. It becomes a contract only when it has the power to give way to a legal obligation (Gibson Douglas, 2013). When an agreement is not capable of creating a duty then it is not a contract. Thereby, an agreement is a large concept as compared to a contract. X invited Z for a dinner and Z accepts it. However, Z do not turn up at the dinner party. In this scenario, X cannot sue Z for damages. It is because the agreement is of a social nature and hence do not create any legal obligation. It is not a contract. In brief, it can be said that an agreement is the initial stage of a contract and contract is completely based on it. Enforcement plays a vital part. Hence, it can be concluded that all contracts are agreements as it can be enforced but all agreements are not contract. References Beatson, J, Burrows A Cartwright, J 2010, Anson's Law of Contract, OUP. Gibson, A Douglas, F 2013, Business law, Pearson.