Indian Contract Act of 1872: What makes a Contract Legal

According to Section 2(h) of the Indian Contract Act, of 1872, a contract is defined

as an agreement between two or more people that is rendered legally

enforceable and that establishes and specifies the duties of the parties. The

statement “every agreement and promise enforceable by law is a contract” is

attributed to Sir F. Pollock. Two essential components:

An agreement

Enforceable by law.

The following components make up a contract:

Offer: Section 2(a) of the Indian Contract Act of 1872 states that a proposal is

made when one person expresses to another his readiness to perform an act or

refrain from performing one in order to get the approval of the other party.

Acceptance is defined as the expression of assent to the offer made by the

offeror in Section 2(b) of the Indian Contract Act, 1872. This acknowledgement

demonstrates that the proposal is indeed approved.

Promise: A person makes a proposal when he or she indicates their willingness

to do or not do something. The proposal turns into a promise after the promisee

accepts it.

Agreement: The legal, mutually binding commitment made between private

parties is referred to as an agreement.

Contract: According to Section 2(h) of the Indian Contract Act of 1872, a

contract is a legally binding agreement.