What is the difference between a “Contract” and a “Promise”? Let us explore these two concepts and look at the difference and similarities between them. First of all, let me inform you that you can read more of what educareguide offers here. I do recommend that you go through our website to learn a lot of content we have made available for you. Remember that our scope extends beyond only business management. In fact we explore other subject areas like mathematics, science, ICT, Law, Economy, Sports, etc.
This notes is relevant to students writing the following examination
- Waec wassce Business Management
- Waec Wassce – Social Studies
- Cabridge International College (CIC) – Business Administration
- Institute of Commercial Management (ICM) – Business Administration
- And many others.
What is a contract?
A contract is a legally binding agreement that can be enforced at a court of law. Read more from here. For a contract to be valid, one party or both parties to a contract will make promise to the other, and the promise is accepted by the other party by making a reasonable sacrifice. The reasonable sacrifice is known in law as a consideration.
What is a Promise in law?
A promise is an assurance giving by a person to another to perform a certain task or duty. For promise to be enforceable at law, the promisee must perform a sacrifice to accept the promise. The promisor is the person who makes the promise, whiles, the promise is the person to whom the promise is made. As discussed above, the sacrifice made by the promisee to accept the promise is known as “consideration”. As a result of this, it then means that a promise that is not backed by a consideration is a mere assurance and thus cannot be enforced a a court of law.
What is the difference between a Contract and a Promise?
- A contract is thus, an a promise that is enforceable at a court of law, whiles, a Promise is a mere assurance that is not enforceable at a court of law.
- For a contract, a consideration is provided for the assurance given, but no consideration is provided for a promise.
- A contract is a legally binding agreement whiles, a promise is just an ordinary social contract.
What is the similarities between A contract and a Promise?
In both situations, a promise or promises are made from one party to the other. Thus, the parties involved give assurances to each other.
What is the difference between a contract and a promise? I believe the answer has well be explained above for your benefit. Educareguide will be with you every step of the way. We explore a wide range of subject areas, topics and sub-topics to meet your knowledge needs. Remember that knowledge is power, and it differentiates the rich from the poor, the powerful from the powerless, etc. Thank you very much.