(b) Enforceability by Law.
For Example: X invites his friend to coffee and the latter accepts the invitation. This is a social agreement not a contract because it does not imply any legal obligation. We can say that:
(a) All contracts are agreements,
(b) But all agreements are not contracts.
(a) All Contracts are Agreements
For a Contract to be there an agreement is essential; without an agreement, there can be no contract. As the saying goes, "where there is smoke, there is fire; for without fire, there can be no smoke". It could be said, "Where there is contract, there is agreement without an agreement there can be no contract". Just as a fire gives birth to smoke, in the same way, an agreement gives birth to a contract. Another essential element of a contract is the legal obligation for the parties to the contract; there are many agreements that do not entail any legal obligations. As such, these agreements cannot be called contracts. For Example:
A gives his car to B for repair and B asks for Ksh. 2000 for the repair works. A agrees to pay the price and B agrees to repair the car. The agreement imposes an obligation on both. The third element of a contract is that the agreement must be enforceable by Law. If one party fails to keep...