(a) What are the differences between Contract and Agreement ?

OR

(b) Explain the different key elements of Business Ethics.

Question

(a) What are the differences between Contract and Agreement ?

OR

(b) Explain the different key elements of Business Ethics.

Accepted Answer

>

> [!TLDR]
> (a) Contract = Agreement + Enforceability by law; every contract is an agreement but not vice versa. (b) Business ethics needs a code of conduct, legal compliance, top-management commitment, publication, ethics officers and employee involvement.
>
> This is a Part-IV essay in the Tamil Nadu HSC Class-11 Commerce syllabus; both alternatives are answered.
>
> **(a) Differences between Contract and Agreement**
>
> | Basis | Agreement | Contract |
> |---|---|---|
> | Definition | Every promise and set of promises forming consideration for each other — offer + acceptance (Sec 2(e)) | An agreement enforceable by law (Sec 2(h)) |
> | Enforceability | May or may not be enforceable by law | Always enforceable by law |
> | Legal obligation | Does not necessarily create a legal obligation | Creates a legal obligation between the parties |
> | Scope | Wider — every contract is an agreement | Narrower — not every agreement is a contract |
> | Essentials | Only needs offer and acceptance | Needs offer, acceptance and all other essentials (consideration, capacity, free consent, lawful object) |
> | Formula | Agreement = Offer + Acceptance | Contract = Agreement + Enforceability by law |
>
> Thus all contracts are agreements, but only those agreements which are enforceable by law become contracts.
>
> **(b) Key elements of Business Ethics**
>
> Business ethics is the application of moral principles and standards to business conduct. Its key elements are:
> 1. **Code of conduct** — a clear written statement of the ethical values and standards the business expects.
> 2. **Compliance with law** — obeying the laws of the land is the minimum requirement of ethical behaviour.
> 3. **Top-management commitment** — ethical conduct must start from the top; leaders set the example. …

Q.(a) What are the differences between Contract and Agreement ?

Concept understanding — Meaning and Essential Elements of a Contract

Basis	Agreement	Contract
Definition	Every promise and set of promises forming consideration for each other — offer + acceptance (Sec 2(e))	An agreement enforceable by law (Sec 2(h))
Enforceability	May or may not be enforceable by law	Always enforceable by law
Legal obligation	Does not necessarily create a legal obligation	Creates a legal obligation between the parties
Scope	Wider — every contract is an agreement	Narrower — not every agreement is a contract
Essentials	Only needs offer and acceptance	Needs offer, acceptance and all other essentials (consideration, capacity, free consent, lawful object)
Formula	Agreement = Offer + Acceptance	Contract = Agreement + Enforceability by law

Q.(a) What are the differences between Contract and Agreement ?

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