Step 1: Understanding the Question:
The question asks for the statutory definition of an agreement that cannot be enforced in a court of law under the Indian Contract Act, 1872.
Step 2: Key Legal Principles and Approach:
The definition of various types of agreements and contracts is provided in Section 2 of the Indian Contract Act, 1872.
Section 2(g) specifically defines agreements that lack legal enforceability.
Step 3: Detailed Explanation:
• Void Agreement Definition: Section 2(g) of the Indian Contract Act, 1872, states: "An agreement not enforceable by law is said to be void."
• Void ab initio: A void agreement does not create any legal rights, obligations, or duties from its inception.
• It is considered null and has no existence in the eyes of the law (e.g., an agreement with a minor under Section 11, as ruled in the classic case of Mohori Bibee v. Dharmodas Ghose).
• Void vs. Illegal: While all illegal agreements (which are forbidden by law or involve criminal acts) are void, not all void agreements are illegal.
• For example, an agreement in restraint of marriage (Section 26) or trade (Section 27) is simply void and unenforceable, but not criminally illegal.
• Therefore, the accurate statutory term for any agreement not enforceable by law is "void", which aligns with Option (D).
Step 4: Final Answer:
According to Section 2(g) of the Indian Contract Act, 1872, an agreement not enforceable by law is void, making Option (D) the correct answer.