Preeti takes a loan from a lender to r. 1 Lakh. Your brother Pradeep promises in writing to the lender that he would repay his sister`s loan if she lost the monthly payments. Preeti repaid the first payments of the loan, after which she went bankrupt. The lender turns to his brother Pradeep and asks him to pay on behalf of his sister. Pradeep refuses to pay. The lender has the right to sue Pradeep for damages and to recover the balance of the loan, since the guarantee agreement was written and registered and was enforceable in court. An agreement is usually an informal, often unwritten, agreement between two or more parties. The parties simply agree to do or refrain from doing something. There is nothing to ask the parties to respect the terms of the agreement, other than the honour system. A standard form contract is a prepared contract, in which most conditions are set in advance, without it being a negotiation between the parties. These contracts are usually printed with only a few spaces to add names, signatures, dates, etc. Thus the Indian Contract Act came into force, which was put into effect by the British government because it decided India at that time.
The law provides a basis for all agreements and contracts. This law was applicable throughout the country, except in the state of Jammu- Kashmir. Interpretation: An agreement refers to an agreement or agreement between two or more parties with respect to their responsibilities and rights. Contractual terms are fundamental to the agreement. If the contractual conditions are not met, it is possible to terminate the contract and claim damages. In short, the agreements and contracts are similar, but certainly not the same. Agreements may be preferred when the parties concerned have long-standing confidence and the case in question requires only informal agreement. However, it is advisable to enter into a contract between the parties if it is more formal and commercial. Agreements and contracts have their respective advantages and disadvantages.