Question

“Every contract is an agreement, but every agreement is not a contract”. This statement is .........

• A. Correct
• B. Wrong
• C. correct subject to certain exceptions
• D. Partially correct

Hint:

In contract law, an agreement must meet certain conditions to be enforceable, distinguishing it from a mere agreement.

Answer 1

The Correct Option is A

The statement "Every contract is an agreement, but every agreement is not a contract" is correct. In legal terms, an agreement is a broader concept that includes every promise or set of promises made between two or more parties. However, not all agreements are legally enforceable or recognized as contracts. For an agreement to become a contract, it must satisfy certain essential legal requirements such as the intention to create legal relations, lawful consideration, and the parties' capacity to contract.
Therefore, the statement is correct as every contract is indeed an agreement, but an agreement does not automatically become a contract unless specific legal criteria are met.
Thus, the correct answer is Correct.