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.