Definition of Contract

S.2(h)
• There should be an agreement
•Agreement should be enforceable by law
 Agreement
• S.2(e)
• In an agreement there is promise from both the
sides.
• Ex- A promises to deliver his car to be , B in return
promises to give rupees 3 lacs to A.( agreement
between A and B).
• Promise- s.2(b)- “proposal when accepted
becomes a promise”- proposal becomes promise
when accepted i.e accepted proposal is a promise.
• Proposal , S.2(a)
1. Two parties.
2. There must be communication
3. Communication should be of the willingness of the
person.
4. Willingness should be to do or abstain from doing
something.
5. The object of signifying a willingness to another is with
a view to obtaining the assent of such act or
abstinence.
• Acceptance , S. 2(b)
1. Only that person can accept to whom a
proposal has been made.
2. There should be communication.
3. Communication should of assent.
4. Communication should be made to the
proposal.
 Enforceable by law
• S.2(h)- agreement enforceable by law is a
contract.
• Agreement may or may not be enforceable.
• Agreement enforceable by law –contract
• Agreement not enforceable by law- void.
Void agreement , voidable contract
• Void agreement – S.2(g)- agreement not
enforceable by law
• Agreement by minor
• Sections 24-30 (w/o consideration, agreement
in restraint of marriage, agreement in restraint
of trade).
• Voidable- S.2(i)- which could be avoided by one
of the parties to the contract at his option.
 Enforceable by law (Contd)
• Agreement alone does not make contract – it should be
recognized by law- legally binding on both the parties-
law will provide a remedy.
• S.10 (what agreements are contract)
1. Parties should be competent to contract.
2. There should be free consent.
3. Object lawful
4. Lawful consideration
5. Agreement should not be expressly declared to be void.
 “Every contract is an agreement but every
agreement is not a contract- Anson”
• S.2(h)- agreement enforceable by law is
contract- agreement must be there.
• Without agreement a contract can never arise,
agreement later converts into the contract.