Assertion: An agreement, in simple words, is a promise.
Reasoning: All agreements are not contracts.
Reasoning: All agreements are not contracts.
Answer & explanation
Correct answer: option 2
An agreement, in simple words, is a promise. All agreements are not contracts. Agreements must meet certain criteria - like consideration, parties must be competent, free consent between parties, lawful object, and, not expressly declared void by law, in order to qualify as a contract. It is important that the persons to a contract should also have the intention and mindset to enter into contract.