Bargain and Agreement Difference

When it comes to legal terms, it`s not uncommon to find some confusion between different phrases and words. Two terms that are often used interchangeably but have very distinct differences are « bargain » and « agreement. » These terms are frequently used in the context of contracts, negotiations, and other legal documents. Understanding the differences between them is crucial for anyone who wants to avoid misunderstandings or legal disputes.

Definition of Bargain

A bargain is a kind of contract or an agreement between two or more parties in which both parties agree to give something of value. The term `something of value` could refer to money, property, services, or something else that the parties deem valuable. In legal terms, a bargain requires an offer and an acceptance of that offer, marking a binding agreement.

For instance, in a real estate deal, the buyer might agree to pay a specific amount of money in exchange for the seller`s property. In this scenario, the offer and acceptance of the offer create a legally binding bargain.

Definition of Agreement

An agreement is a broader term that can describe any arrangement between two or more parties. Unlike a bargain, an agreement doesn`t necessarily require the exchange of something of value. For instance, a landlord and tenant could agree to a rental term, without necessarily exchanging any money or other tangible goods.

An agreement doesn`t necessarily require a formal contract, either. It can be an oral agreement, a written agreement, or even an implied agreement based on the conduct of the parties involved.

Difference Between a Bargain and an Agreement

While a bargain and agreement have some similarities, the primary difference between them lies in whether something of value is exchanged as part of the arrangement. A bargain always involves an exchange of something of value, while an agreement could, but doesn`t always need to include such an exchange.

Another key difference lies in the legal binding power. A bargain is legally binding, while an agreement may or may not be binding. That`s because, in an agreement, there may be no offer or acceptance, making it non-binding.

Conclusion

In summary, a bargain is a type of agreement that involves an exchange of something of value between the parties involved. An agreement, on the other hand, is any arrangement between two or more parties, whether or not something of value is exchanged. Understanding the difference between these two fundamental legal terms can help individuals avoid costly legal disputes and ensure that their contracts are legally binding.

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