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Business Law & Taxation: Assignment: 01

An agreement comes into existence when a proposal is accepted, forming a promise between two parties. Not all agreements are considered contracts under law, as contracts must meet additional requirements of being legally binding and enforceable. For an agreement to become a contract, it must create legal obligations between the parties where non-compliance can be resolved through legal action, which requires the agreement have an offer, acceptance, and consideration.

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41 views1 page

Business Law & Taxation: Assignment: 01

An agreement comes into existence when a proposal is accepted, forming a promise between two parties. Not all agreements are considered contracts under law, as contracts must meet additional requirements of being legally binding and enforceable. For an agreement to become a contract, it must create legal obligations between the parties where non-compliance can be resolved through legal action, which requires the agreement have an offer, acceptance, and consideration.

Uploaded by

M. Hasan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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BUSINESS LAW & TAXATION

Assignment: 01
Question 01: How does an agreement come into existence?
When a proposal is accepted it becomes a promise. An agreement,
therefore, comes into existence only when one party makes a proposal or
offer to the other party and that other party gives his acceptance. When
agreement is incapable of creating a duty enforceable by law

Question 02: All contracts are agreements, but all agreements are not
contract. Why?
An agreement which lack all of the required elements to be considered
as contract. Which is legally enforceable, is still an agreement. Both
parties have socially and morally bound to keep it.

Question 03: Not all agreements are enforceable by law. Why?


To make a contract, an agreement must be enforceable by law. This
means that the agreement must give rise to legal obligation. In such
cases no one can sue the other party in case of default.

Question 04: When does an agreement become contract?


Every agreement and promise enforceable at law is a contract. An
agreement starts from an offer and ends on consideration but a contract
has to achieve another target i.e. enforceability.

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