Sunday, December 17

Contract And a Promise, Distinction Between Both

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Contract and a Promise, Distinction between Both

By

S J Tubrazy

A promise ripens into an agreement only after an offer is accepted but every promise is not necessarily an agreement. There is difference between the contract and a promise as a valid contract creates obligation and is capable of enforcement in law whereas a mere promise to render service or to hand over certain property moveable or immoveable to a person without any consideration may not create a contractual obligation to be enforced in law. It is thus necessary for the party claiming the creation of a legal right in the moveable or immovable property under an agreement to prove the existence of such an agreement and its legal force. The transfer of the title of the immoveable property for love and affection or for such other reasons by way of gift or will may create right in the property but a promise for transfer of title without any consideration may not constitute a contract capable of enforcement in law. The promise to perform certain act without any consideration may have moral value but such promise neither creates a contractual obligation nor a legal right and thus a promise in absence of essential terms of consideration may have no binding force and legal effect. The acceptance of a proposal may bring into existence a promise but to have an agreement, it is essential that there should be consideration for promise without which the promise may not have the legal status of an agreement.

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