Section 2(d) of the Indian Contract Act, 1872.
Section 2(d) of the Indian Contract Act, 1872
Text of Section 2(d):
"An agreement enforceable by law is a contract."
Explanation:
Agreement:
An agreement is a promise or set of promises made between two or more parties, creating mutual obligations.
Enforceable by Law:
For an agreement to be enforceable by law, it must fulfill all the legal requirements to be a valid contract. That means it must meet conditions like free consent, lawful consideration, lawful object, capacity of parties, and certainty of terms.
Contract:
When an agreement satisfies all the legal criteria and courts can enforce it, it is called a contract.
In simpler terms:
Every contract starts as an agreement.
Only those agreements that the law can enforce (i.e., parties can go to court to get relief if the agreement is broken) are contracts.
If an agreement lacks any legal enforceability (e.g., it involves illegal activities), it is not a contract.
Importance:
This section distinguishes a mere agreement from a contract.
It lays down the foundation that a contract is not just any agreement, but an agreement recognized and enforceable by the law.
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