CONTRACT LAW (keywords)


‘every agreement and promises enforceable by law is contract’ - Pollock.

Indian Contract Act, 1872 Section 2(h):-

‘an agreement enforceable by law is contract’. This definition gives us two ingredients:-n agreement and ‘enforceable by law’. We can summarize it as under.



An agreement means a promise and a reciprocal set of promises forming consideration for each other—Section 2(e). This definition gives us three ingredients—promise and a consideration. We can summarize it as under.



Section 2(a) states that ‘when one person signifies another person his willingness to do or abstain from doing anything with a view to obtaining the assent of that other to such an act or abstinence, he is said to make a proposal’. A Proposal is also known as an offer.


As per Section 2(b) of the Contract Act, a proposal when accepted becomes a promise.


Parties to an Agreement/a Contract:

Promisor: A person making the proposal (offer) is known as a promisor. He is also known as an offeror. We can also recognize him as a proposor.

Enforceability of an Agreement:

It means an agreement which creates some legal obligation; if this agreement is not followed by any party to contract, he can be sued.


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