2016-AG-7520

2016-AG-7523
CONTENTS

• Introduction
• Definition
• Tools of Agreement
• Characteristics of Agreement
• Types of Agreement
INTRODUCTION

• An agreement is made when two people reach an understanding about a

particular issue,including their obligation, duties and rights.While agreement is
sometimes used to mean contract legally binding oral or written agreement.It is
actually a broader term.
DEFINITION

According to Contract Act 1872:

Every promise and set of promises forming the
consideration for each other is called agreement.
FOR EXAMPLE:

• A simple example of agreement is the decision between two people to share

the rent in an apartment.
• Examples of such agreements in business include bills of sale, purchase
orders, and employment agreements.
 TOOLS OF AGREEMENT

• 1.Offer : In offer a person makes a proposal.

• Example: Shopkeeper & Customer or in between Painter and Landlord
• 2.Acceptance: When it is(offer)accepted by others is called acceptance and it becomes a
promise.
• Promise=Offer + Acceptance
CHARACTERISTICS OF AGREEMENT

• Benefit of both the parties.

• If in written or documented form then it will be a proof for future matters.
• Agreement are fully understood.
TYPES OF AGREEMENT
• Social Agreement
• Legal Agreement
• Sale deed Agreement
• Mortgage Agreement
• Construction Agreement
• Research Agreement
• Confidentiality Agreement
• Material transfer Agreement
• Service Agreement
• Small Business innovation research Agreement
CONTRACT

Contract=Agreement + Enforceability

Contract is the agreement between promiser and promisee based on

the lawful activities.
EXAMPLE OF CONTRACT

• Contract between householder and tenant.

TYPES OF CONTRACT

ON THE BASIS OF VALIDITY

• VALID CONTRACT:
An agreement is enforceable by law when all the essentials features of
valid contract are present.
For example, you sign to buy a blue house, and the house is blue; thus the
contract is valid.
VOIDABLE CONTRACT

• A contract becomes voidable when the consent is not free.Usually a contract becomes voidable when
the consent of one of the parties to the contract is not free.
• For example: A,threatens to shoot B if he does not sell his bike to A. B agrees.This contract is voidable at
the option of B.
VOID CONTRACT

• A contract which can not be enforce by either party is called void contract.A void contract has no legal
effect at all.
• For example:
• Agreement in restraint of marriage.
 PROMISER:

• Promiser is the person who has been promised something.

• Promisee:

• Promisee is the person receiving the promise from the

promisers.
ESSENTIALS OF A VALID CONTRACT:

• 1)Proper offer and acceptance:

A valid contract has a proper and acceptance because it is

necessary for validity of contract.
 2)LAWFUL OBJECT:

Contract=Agreement + Enforceability
• A valid contract is based on legal activities.This law are applied
when inflation is made by promiser or promisee.
 3)FREE CONSENT:

• The free consent is the single point under which we do any contract with our
own will or wish.
It has further tools which help for free consent.
TOOLS FOR FREE CONSENT:

1)Coercion:coercion is the committing or threatening to commit any act

forbidden by pakistan panel court

2)Undue influence: There should not be influenced of any political party or

impressive person.

3) Fraud: There will not be any contract at fraud.

4) CERTAINING OF MEANING:

Every contract has its own importance.A valid contract has its specific
objects.

5)Legal Formalities:
A valid contract is not oral.It is in written form or in documented form
6)POSSIBILITY OF PERFORMANCE:

In valid contract all things is practical not as imaginary.

7)CAPACITY OF PARTIES:

Three person are not able for a contract.

1)Unsound minded people
2)Minor: who is less than 80 years age
3)Person disqualified by law