What is Contract?
According to the section 2(h) of the Indian Contract Act 1872, " An agreement enforceable by law is a contract." In order to understand it deeply we shall have to understand what agreement is first because it is created before an agreement takes place between the parties. AGREEMENT - According to section 2(e) of the Act, the term "Agreement" is defined as " Every promise and every set of promises, forming the consideration for each other" section 2(b) defines promise as " When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. Proposal when accepted, becomes a promise." As a conclusion we say that , an agreement is the result of the proposal made by one party to the other party and that party gives his acceptance thereto. A greement = O ffer / P ropos...