Indian Contract Act
THE INDIAN CONTRACT ACT, 1872
CONTRACT
Section 2(h) defines a contract as “an agreement enforceable by law”
Thus to make a contract there must be – (i) an agreement (ii) the agreement should be enforceable by law.
All agreements are not enforceable by law and, therefore, all agreements are not contracts. Some agreements may be enforceable by law and others not. For example, an agreement to sell a radio set may be a contract, but an agreement to go to see a movie may be a mere agreement not enforceable by law. Thus, all agreements are not contracts. Only those agreements which satisfy the essentials mentioned in section 10 become contract. However all contracts are agreements.
AGREEMENT
According to section 2(e) an “agreement” is defined as “every promise and every set of promises forming the consideration for each other” And a promise is defined as an accepted proposal as Section 2(b) says “ a proposal when accepted becomes a promise “ Therefore it can be said that an agreement is an accepted proposal.
The process of definition comes down to this : A contract is an agreement ; an agreement is a promise and a promise is an accepted proposal. In an agreement there is a promise from both the sides. For example, A promises to deliver his radio to B and in return B promises to pay a sum of Rs. 500 to A , there is said to be an agreement between A and B
Thus every agreement, in its ultimate analysis, is the result of a proposal from one side and its acceptance by the other.
A promise is a result of an offer (proposal) by one person and its acceptance by the other. For example, when A makes a proposal to sell his radio to B for Rs. 500 and B accepts this proposal, there results a promise between the two persons. Section 2(b) of the Act defines a promise as under : “When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal when
CONTRACT
Section 2(h) defines a contract as “an agreement enforceable by law”
Thus to make a contract there must be – (i) an agreement (ii) the agreement should be enforceable by law.
All agreements are not enforceable by law and, therefore, all agreements are not contracts. Some agreements may be enforceable by law and others not. For example, an agreement to sell a radio set may be a contract, but an agreement to go to see a movie may be a mere agreement not enforceable by law. Thus, all agreements are not contracts. Only those agreements which satisfy the essentials mentioned in section 10 become contract. However all contracts are agreements.
AGREEMENT
According to section 2(e) an “agreement” is defined as “every promise and every set of promises forming the consideration for each other” And a promise is defined as an accepted proposal as Section 2(b) says “ a proposal when accepted becomes a promise “ Therefore it can be said that an agreement is an accepted proposal.
The process of definition comes down to this : A contract is an agreement ; an agreement is a promise and a promise is an accepted proposal. In an agreement there is a promise from both the sides. For example, A promises to deliver his radio to B and in return B promises to pay a sum of Rs. 500 to A , there is said to be an agreement between A and B
Thus every agreement, in its ultimate analysis, is the result of a proposal from one side and its acceptance by the other.
A promise is a result of an offer (proposal) by one person and its acceptance by the other. For example, when A makes a proposal to sell his radio to B for Rs. 500 and B accepts this proposal, there results a promise between the two persons. Section 2(b) of the Act defines a promise as under : “When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal when