Discuss the meaning of this statement: "Even though all contracts are agreements, not all agreements are contracts." In your answer, outline the elements of a legally binding contract.
The contracts and the agreements are cordially connected to each other and it creates an effective formation for any of the business in a strategic way. Any of the contract and the agreement process will take up several other possibilities like some of the lawful consideration that can help business to grow and develop itself in the market in a perfect way. The capacity of the different parties involved will take care about the contracts and the agreements that made between both the parties. When the parties involve themselves in the contract or any of the agreement process then they need to create an interaction and communication for maintaining the legal relationship in the business (Fisher et al. 2010). The free consent possibilities will also be there for the different business structures that can anticipate for the valid contact process and agreement in the business.
For the business contract, it is very essential to have an agreement and it can help for the business grows in a positive way. The close reference process between the parties involved can identify as agreement that can happen for the consideration of the honor of the parties involved in the business structure. On the other, hand the business contract is a legal framework for the business that the parties maintain between each other. For the performance of certain acts, it is very much necessary that both the parties agree upon the contracts they made. The legal actions that the parties take will proceed with the lawful matter and the consideration for the businesses will help for the understanding of the entire thing by the process of law.
In business process, it is important that legal binding can progress with several understanding and acknowledgement so that the contract and the agreement process can be justified in a positive way. The legal obligations that rise in any of the business will incorporate agreement that connect with the contract in later ways. The duties that enforceable to the businesses will help for the agreement and the mutual consent between the parties will help for the entire business structure. As an example we can say, A has taken B in the business and B agrees to accept the proposal of the business. Fort business purposes A invites B for a party to conclude the entire thing but here B doesn’t come for the party. Here the damage can not include any of the legal obligations so it is not an contact. The free consent in the business process generates from agreement.
In the business, it is necessary to have the contract along with the agreement in a strategic way so the implementation process can be maintained in a specific way. The agreement transferred in the contract process when the parties agree upon several business structures and this process will fulfill the criteria for the satisfaction of the both the parties. The competency between the parties, some of the objects with lawful consideration, free consents of the parties will help for the business development for any further happenings. The contract provisions and the agreements need to fulfilled all the criteria in legal terms and the legal procedures help for the final contract process. For making any of the contracts, it is important to have the agreements as the first process of the business strategy. The agreements do not involve any of the legal bindings (Tsai, Jessica et al. 2010). The agreement when become registered and written for the business will take up contract format and before doing the contract the parties in the business needs to be aware of the entire rules and regulations.