Question

A contract is defined under the Indian Contract Act, 1872, to be _____________.

• A. An agreement enforceable by law
• B. An agreement recognised by law
• C. A promise backed by consideration
• D. A set of reciprocal promises

Hint:

To remember the hierarchy of contract formation: Proposal + Acceptance = Promise; Promise + Consideration = Agreement; Agreement + Enforceability = Contract.

Answer 1

The Correct Option is A

Step 1: Understanding the Question:
The question asks for the exact statutory definition of a "contract" as specified in the Indian Contract Act, 1872.

Step 2: Key Legal Principles and Approach:
The definition is located in the interpretation clause under Section 2(h) of the Indian Contract Act, 1872.

Step 3: Detailed Explanation:

• Statutory Definition: Section 2(h) of the Indian Contract Act, 1872, provides the briefest and most accurate definition: "An agreement enforceable by law is a contract."

• Two Essential Elements: This definition outlines two primary conditions for a contract:

• (1) The existence of an agreement (which is defined under Section 2(e) as every promise and set of reciprocal promises forming consideration for each other).

• (2) The agreement must be enforceable by law.

• Enforceability Criteria: Under Section 10 of the Act, an agreement is enforceable if it is made by the free consent of parties competent to contract, for a lawful consideration, with a lawful object, and is not expressly declared void by the law.

• Since Option (A) presents the exact literal text of Section 2(h), it is the correct choice.

Step 4: Final Answer:
A contract is defined as "an agreement enforceable by law" under Section 2(h), making Option (A) the correct answer.