contract

Section 2(h) of the Indian Contract Act defines a contract as an agreement enforceable by law, and s.10 says what makes it so: free consent of parties competent to contract, lawful consideration and a lawful object, and the agreement must not be expressly declared void. An agreement is formed by a proposal and its acceptance (s.2(a), (b) and (e)).

All contracts are agreements, but not all agreements are contracts. Social and domestic arrangements usually lack the intention to create legal relations, and agreements failing any element of s.10 are void. Writing is generally not required unless a statute demands it. A minor is not competent, so his agreement is void.

Example

The promise to take a friend to dinner is an agreement, but not a contract, because the parties never intended legal consequences.

In Indian law

• Sections 2(h) and 10, Indian Contract Act, 1872
• Mohori Bibee v. Dharmodas Ghose (Privy Council, 1903): a minor's agreement is void
• Balfour v. Balfour (Court of Appeal, England, 1919): domestic arrangements lack intention to create legal relations

See also

agreement · offer · acceptance · consideration

Read more in the study notes

• Government contracts and state liability: the administrative-law angle (Administrative Law)
• Administrative law: meaning, nature, scope, growth and sources (Administrative Law)
• Rule of law and droit administratif (Administrative Law)
• Classification of administrative action (Administrative Law)
• Delegated legislation: meaning, growth, merits and administrative directions (Administrative Law)
• Judicial control: public and private law remedies, writ procedure and ouster clauses (Administrative Law)