UNIVERSITY OF IRINGA

FACULTY OF LAW

COURSE NAME: LAW OF CONTRACT

LECTURER: ADV.DEBORA JOHN MFIKWA

NAME OF STUDENT JULIETH WILLIAM MTANI

REGISTRATION NUMBER LLB-29317

NATURE OF WORK: INDIVIDUAL ASSIGNMENT 2

DUE DATE: 04TH FEB 2022

QUESTION; The genesis of a contract is agreement between parties. Where as all contract
are agreements, and not all agreements are contract. Analyse
INTRODUCTION

Referring to the question which states that the genesis of a contract is an agreement between
parties where all contracts are agreement and not all agreements are contracts .In which due to
the existence of some elements which makes not all agreements to be contract and which
according to this work will begin with defining different terms such as contracts and agreements
and in the main body will consist of elements of a contract and the third part will be the
conclusion part.

Contract

Is an agreement made between two or more parties which law will enforce .Which
according to the law of contract Act section 2(1)(h)1 states that an agreement that is enforceable
by law is a contract.

Agreement

Refers to an offer or proposal that is made by one party and an acceptance is made by the
other party to whom the offer is made2.

Main body

As the requirement of the question which state that all contract are agreement but not all
agreement are contract. Am going to tackle this question by reflection of Section 10 of the law of
contract Act3 which provide for an element of contact, so the agreement which will consider that
section it result to a contract but otherwise it will still as agreement.

Element of valid contract

Parties

Most important things in any agreement is parties where by there shall be two parties the one
who makes the offer and another who accept that offer, as occurred under the case of PATTY

1
[Cap 345 RE 2019]
2
https://www.meriamwebster.com retrieved 1st feb 2022 at 13:12
3
[Cap 345 RE 2019]
INTERPLAN LTD vs. TPB BANK PLC 4 where by the court held that the parties are bound by
their contract.

Offer and Acceptance

A contractual relationship is initiated by one party extending an offer to the other to accept
his proposition either according to the terms of the offer or on such other terms as the parties
may eventually agree. Ultimately, for the agreement to be binding, there must be an offer and a
corresponding acceptance. It is the said offer can now be termed as Proposal that, if accepted by
another according to the terms, will create a binding Agreement .And according to Section 2(1)
(a) of the law of contract Act 5 provides that offer is some kind of suggestion or proposal made
by one person and directed to another6.

Lawful Consideration

To bind the other party, he / she must pay the agreed price in return for the promise or
undertaking by that other to discharge the obligations imposed on him by the contract. The price,
need not be pecuniary in nature as long as it confers some value or benefit to the offeror. Also it
must be real and lawful, Section 23 of the law of contract Act 7 provides that an agreement to be
enforceable by law must be supported by consideration.

Intention to create Legal Relations

In this regard, parties will only be bound in contract if their transaction was intended to create
legal binding relations. It must be borne in mind that, intension is the core of every contract. The
mutual intension of the parties to be bound in contract may be expressed in their oral or written
agreement.it can be referred to the case of BALFOUR Vs. BALFOUR8 in which give more
elaboration on not all agreements are contracts this including social ,domestic and political
nature agreements are contracts.

Free and genuine contest

4
CIVIL APPLICATION NO. 103/01 OF 2018
5
[Cap 345 RE 2019]
6
Cheshire F & Furmston T, Law of Contract, (11st Edition). Butterworths Publishers, 2006, at page 11
7
[Cap 345 RE 2019]
8
1919
In this regard, parties will only be bound in a contract if the consent or willingness of the parties
was free and genuine while adhering to all conditions freely and this has be shown to the law of
contract Act Section 13 and 14 in which in this section states that consent is said to be free when
it is not caused by coercion as defined in Section 15 of the law of contract Act 9 , undue influence
as defined in section 16,fraud as defined in Section 17 and misinterpretation defined in Section
18.

Capacities of the parties

In this parties to the contract should be capable of entering into a valid contract whereby under
Section 11 and 12 of the law of Contract Act 10 provides that he should be at the age of majority
and also should have a sound mind and should be disqualified from contracting by any law. The
case of Nash vs. Inman11, the court held that the person who is capable of entering into a
contract is the person who have the age of majority or the child can enter into a contract when it
include necessary thing, according to this case the coat was not necessary to Inman so the
contract was void abinitio.

Lawful object

In this for it to be regarded as a contract the parties must consider the lawful object in which an
object should be the one that is authorized, approved and not prohibited by law, Section 23 of the
law of Contract Act12 provides that the object of the agreement must be lawful, in other words it
means the object must not be illegal, immoral or opposed to public policy.

Conclusion

Not all agreements can be contracts due to the elements of a valid contract that should have and
which it distinguishes between an agreement and a contract in which political or domestics
agreement cannot be termed as a contract though for to be a contract there must be an agreement
between the parties.

BIBLIOGRAPHY
9
[Cap 345 RE 2019]
10
[Cap 345 RE 2019]
11
2 kb 1908
12
[Cap 345 RE 2019]
BOOKS

F Cheshire & T Furmston , Law of Contract, (11st Edition). Butterworth’s Publishers, 2006.

STATUTES

The law of Contract Act [Cap 345 RE 2019]

CASE LAW

BALFOUR Vs. BALFOUR (1919)

Nash vs. Inman 2 kb 1908

PATTY INTERPLAN LTD vs. TPB BANK PLC (CIVIL APPLICATION NO. 103/01 OF
2018)

ONLINE MATERIAL

https://www.meriamwebster.com