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Section 2(h) of the Indian Contract Act, 1872 defines a contract as “an agreement enforceable by law”. How do you understand the meaning of the expression “agreement”?

Question and options

Section 2(h) of the Indian Contract Act, 1872 defines a contract as “an agreement enforceable by law”. How do you understand the meaning of the expression “agreement”?
  1. An agreement is a promise or set of promises forming consideration for each other
  2. An agreement is a proposal and it is written
  3. An agreement can be entered between the parties for any purpose/s
  4. An agreement is only a formality between the parties associated with it

Answer and explanation

Correct answer: A - An agreement is a promise or set of promises forming consideration for each other
Section 2(e) of the Indian Contract Act, 1872 defines an agreement as 'every promise and every set of promises, forming the consideration for each other'. An agreement need not be in writing, an agreement for an unlawful purpose is void under section 23, and an agreement is not a mere formality, so the other descriptions fail.

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