Award vs Agreement
Identifying the difference between the terms Award and Agreement is fairly simple. Indeed, the definition of each term illustrates this difference clearly. Keep in mind that the definitions of Award and Agreement vary from field to field. Thus, in general, the definition of ‘Award’ is vastly different to its meaning in law. For example, an Award in the field of education refers to a prize or the giving of a prize or any other high commendation. In contrast, an Award in law refers to a judicial determination. Let’s examine both terms more closely.
What does Award mean?
Traditionally, an Award is defined as the giving of something, such as a prize, or ordering the giving of something to someone, such as payment or compensation. Legally, however, it is interpreted to mean a judicial determination or the decision given by a court of law. For example, if a plaintiff files an action claiming a sum of $50,000 as compensation for the damage suffered, then if the court rules in favour of the plaintiff, the court will award the plaintiff $50,000. An Award is usually granted or ordered following the evaluation and assessment by a judicial body of facts and evidence pertaining to the case. Most often, an Award constitutes a payment or compensation. However, it can also be in the form of injunctions, specific performance of a contract or any other type of relief. In addition, the term ‘Award’ is commonly associated with arbitration proceedings. Thus, the decision of an arbitrator is commonly referred to as an Award, or more specifically, an arbitral Award. An Award represents the final decision or judgment of either a court of law or an arbitrator granting relief or compensation to the aggrieved party.
What does Agreement mean?
In common parlance, an Agreement refers to a meeting of the minds, a consensus between two or more people. Typically, there is an agreed acceptance and understanding of certain rights and obligations that must be carried out in order to give effect to the Agreement. An Agreement can be either oral or written and signifies the coming together of parties for a purpose. In law, an Agreement is commonly associated with a contract. However, keep in mind that for an Agreement to become a contract there must be consideration and the Agreement must be legally enforceable. Thus, where the parties did not intend on making the Agreement legally enforceable, it will not be binding on the parties. From a legal perspective, an Agreement typically refers to a legally enforceable contract between two or more parties. It is defined in law as a mutual understanding between two or more parties or entities about their rights and obligations with respect to the past or future acts and performances and consideration. An Agreement can either be a contract or it could also refer to a sale or transfer of property, movable or immovable.
What is the difference between Award and Agreement?
• An Award refers to a judicial determination or the final decision of a court of law.
• In contrast, an Agreement refers to a mutual understanding between two or more parties with respect to some agreed purpose. From a legal perspective, it refers to a legally enforceable contract between two or more parties.
• An Agreement can be either oral or written.
• Awards can be in the form of payments, compensation, injunctions or specific performance of a contract.