The Indian Contract Act 1872 Chapter First Ca Foundation

The Indian Contract Act 1872

what is contract

the term contract is defined under section 2(h) of the Indian contract act 1872.a contract consist of two essential elements that are (a) an agreement       (b) its enforceable by law 

Agreement

the term agreement is given in section 2(e) of the act is defined as every promise or set of promises forming the consideration of each other. we need to understand the meaning of promise before the agreement. 

promise section 2(b) = promise means when one person offers to another person or signifies his willingness to another person and when another person accepts his offer then offer becomes a promise. 

Agreement = offer/proposal + acceptance

Enforceable by law 

an agreement to become a contract when it must give to a legal obligation which means it is enforceable by law.let us to take an example.

A agrees with B to sell a car for 2 lacs to B. here A is under an obligation to give the car to B and B has to right to receive the car on payment of 2 lacs. B is under an obligation to pay 2 lacs to A and A has a right to receive 2 lacs.