Legal Writing: Agreement

Agreement. —

Every promise and every set of promises forming the consideration for each other is an agreement [Section 2(e) of Indian Contract Act.]

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Contract. —

An agreement enforceable by law is a contract [Section 2(h) of the Indian Contract Act.] All agreements are not contracts but all contracts are agreements.

All agreements are contracts if they are made by free assent of the parties competent to contract, for a lawful consideration and with a lawful objects, and are not expressly declared to be void (Section 10 of the Indian Contract Act, 1872.)

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(i) VALID AGREEMENTS:

Agreements enforceable by law are valid agreements

(ii) VOID AGREEMENTS:

Those not enforceable by law are void agreements .
Section 24 of the Contract Act reads as under:
“24. Agreements void, if considerations and objects unlawful in part.—. If any part of a single consideration for one or more objects, or anyone or any part of any one of several considerations for a single object, is unlawful, the agreement is void."

(iii) VOIDABLE AGREEMENTS:

Agreements enforceable by law at the option of one or more of the parties thereto but not at the option of the other or others are voidable agreements [Section 2(0 of the Indian Contract Act.]

What agreements are contracts:

(i) If they are made by free consent of the parties;
(ii) If such parties are competent to contract;
(iii) If the agreements are made for a lawful consideration;
(iv) If the agreements are made for a lawful object;
(v) If the agreements have not been expressly declared to be void.

Agreements are binding on representatives.—

According to i on 37 of the Indian Contract Act, promises bind the representatives the promisors in case of the death of such promisors before performance, unless a contrary intention appears from the contract.

Attestation.—

Attestation of an agreement by a witness is not essential although such attestation is usually made as in the case of bonds. Where registration is desired the agreement should be attested by two witnesses.

Registration.—

If by an agreement an interest is created in an immovable property of the value of rupees one hundred or more, then the registration of such an agreement is compulsory. In other cases registration is optional.

Stamps.—

If an agreement or memorandum of an agreement relates in (i) the sale of a bill of exchange, or (ii) to the sale of a Government security or share in an incorporated company or other body corporate or if it has not been provided for otherwise, then such an agreement is chargeable with stamp-duty under Article 5 of Schedule I to the Bangladesh stamp Act. The following are exemptions:

(1) Agreement for or relating to the sale of goods or merchandise exclusively, not being a Note or Memorandum chargeable under Article 43.

(2) Agreement made in the form of tenders to Central Government for or relating to any loan. (Article 5 of Schedule I to the Indian Stamps Act.)