The Indian Contract Act 1872, section 2(e), defines an agreements as “every promise and every set of promises, forming the consideration for each other is an agreement.”A promise is essentially an offer or a proposal, made by a person or an entity, towards another. The assent of the other, results in the acceptance of the offer; thereby creating an agreement.
The essentials of a valid contract being:
- Proposal
- Acceptance
- Lawful Object
- Lawful Consideration
- Capacity to Contract