Q 2.3. “An agreement enforceable by law is a contract”. Discuss the statement.

Answer: –

A contract is defined under Section 2(h) of the Indian Contract Act, 1872, as “an agreement enforceable by law.” This means that while all contracts are agreements, only those agreements that meet legal requirements become contracts.

Explanation of the Statement

1. Agreement Definition – An agreement is a mutual understanding between two or more parties to do or not do something.
2. Legal Enforceability – To be a contract, an agreement must be legally binding and enforceable in a court of law.
3. Essential Elements of a Contract – A valid contract must include an offer, acceptance, lawful consideration, capacity of parties, free consent, and a lawful object.
4. Non-Enforceable Agreements – Social or moral agreements (e.g., a promise to meet a friend) are not contracts as they lack legal enforceability.
5. Example – A contract to sell goods for a fixed price is legally binding, while a casual promise is not.
6. Conclusion – Only agreements that fulfill legal conditions and create legal obligations qualify as contracts.