Question:

An agreement that is enforceable by law is called?

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The Equation: Agreement + Enforceability = Contract. All contracts are agreements, but not all agreements are contracts.
Updated On: Jun 30, 2026
  • Contract
  • Promise
  • Agreement
  • Invitation to treat
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The Correct Option is A

Solution and Explanation

Concept: The Indian Contract Act provides a clear set of definitions for the building blocks of legal transactions.

Step 1: Analyzing the definitions in Section 2.

Section 2(e): Every promise and set of promises is an Agreement.

Section 2(h): An agreement enforceable by law is a

Contract.

Step 2: Differentiating the terms.
An agreement without enforceability is just a social promise. Only when it creates a legal obligation does it become a

Contract.
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