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All Contracts Are Agreement But All Agreement are Not Contract:
In order to explain the above statement first of all we have to know what does it mean by
agreement and contract. Agreement is defined as every promise and every set of promise
forming the consideration for each other and Contract is defined in section 2(h) of the
Contract Act, 1872 as follows- an agreement enforceable by law, is a contract.
An agreement is regarded as a contract when it is enforceable by law. The conditions of
enforceability are stated in section 10. According to this section, an agreement becomes a
contract only if the following conditions are satisfied1. The agreement must be made by the free consent of the parties.
2. It must be made by the competent parties.
3. It must be made for lawful consideration.
4. It must not be expressly declared to be void.
So from the above discussion we can say that all contracts are agreement but all
agreement is not contract.

Characteristic of a proposal/ offer:

1. The proposer must be communicated to the other party: According to the
definition of the proposal the willingness to make offer should be signified i.e.
indicated or declared.
2. The offer must be made with a view to obtain the consent of the offeree: the
second part of the definition emphasis the requirement that an offer must be made
with a view to obtain the consent of the offeree to the proposed act.
3. The offer must be capable of creating legal relationship:
4. The offer must have its terms definite and clear:
5. The offer must express the final willingness of the offeror:
6. The offer must be distinguished form an answer to a question: The terms of an
offer should be clear so that there is no confusion whether it is a valid offer or an
answer to a question. An answer to a question cannot be taken as an offer.
7. The offer must be distinguished form an invitation to receive offer:
8. It must be distinguish from mere statement of intention;

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9. It may be made to the world at large: Carbolic Smoke Ball Co. advertised in the
newspaper that anyone who would take according to the printed directions, the
smoke balls manufactured by it would not contract the increasing epidemic
influenza or colds. The reward of 100was offered by the company to anyone
who contracted influenza or cold after having used the smoke balls according to
the printed directions. It was also added that 1000 are deposited with t6he
alliance bank showing the sincerity of the company. One Mrs. Carlill used the
smoke balls according to the printed directions. But she subsequently suffered
form influenza. In this case it was decided that she was entitled to recover the
reward.
10. It may be positive or negative: The definition of proposal provides- the offer may
be to do something or not to do something.
11. The offer may be express or implied: this legal rule for valid offer provides by
section 9. An offer which is expressed by words, written or spoken is called an
express offer. The offer which is expressed by conduct is called an implied

CLASSFIFICATION OF CONTRACT
All the contracts may be broadly classified into following three main categories:1. According to enforceability
2. According to formation
3. According to performance
Classification of contracts according to their enforceability:
1. Valid contract
2. Void contract
3. Voidable contract
1. Valid contract: We know that a contract is an agreement which is enforceable by law
and section 10 contents the conditions of enforceability of a contract. So the contract
which is enforceable by is a valid contract.
2. Void contract: A contract which is ceases to be enforceable by the formal court of law
is a void one. Section 2 (j) of the Contract Act -1872, provides that A contract which

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ceases to be enforceable by law becomes void. It may be noted a contract should be

valid and legally enforceable at the time when its was made. But later it become legally
unenforceable.
Ex- A promised to marry B, later B dies, and here the contract becomes void on the death
of B.
3. Voidable contract: A contract which can be put to an end at the option of one of the
party to the contract, will be known as Voidable contract.
Classification of contract according to their formation:
1. Express contract: an express contract is that which is made in writing or by the words
of mouth. According to section -9 of Contract Act- In so far as the proposal or
acceptance of any promise is made in words, the promise is said to be express
Ex:A wrote a letter to B, I am prepared to sell my car for Tk. 50000, B also accepted the
offer by letter. This is an express contract.
2. Implied contract:
The contract which is not made by words will be known as implied contract.
Ex:-A went to a restaurant and takes a cup of tea. In this case there is an implied contract
that he will pay for the cup of tea.
Classification of contracts according to their Performance:
1. Unilateral contracts: A unilateral contract is a one sided contract in which only one
party has to perform his obligation. In such contract promise on one side is exchanged for
an act on the other side.
Ex:- A promised to pay to Tk.5000 to any one who finds his lost dog. B found the dog
and returned it to A. It is a unilateral contract which comes into existence when the dog is
found. Now only A has to perform his obligation by paying the money to B. Because B
had already performed his part of obligation.
2. Bilateral contracts: A bilateral contract is a two sided contract in which both the
parties have to perform their respective obligation.
3. Executed contracts: when a contract has been completely performed then it is termed
as executed contract.

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4. Executory contract: where one or both the parties to the contract have still to perform
their obligations in future the contract is termed as Executory contract.
Ex- A agreed to sell his car to B. for Tk.50000. car was to be delivered by A on 15 th of
this month and B have to pay the money on 25 th of that month. It is an Executory contract
as both the parties have to perform their respective obligation in future.