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, of 1872. This acknowledgment 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.