Every promise and every set of promises, forming the consideration for each other, is an agreement;
An agreement not enforceable by law is said to be void;
An agreement enforceable by law is a contract;
An agreement which is enforceable by law at the option of one or more of the parties thereto, but not at the option of the other or others, is a voidable contract;
What agreements are contracts—
All agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void.
Nothing herein contained shall affect any law in force in India, and not hereby expressly repealed, by which any contract is required to be made in writing or in the presence of witnesses, or any law relating to the registration of documents.
Who are competent to contract—
Every person is competent to contract who is of the age of majority according to the law to which he is subject) and who is of sound mind and is not disqualified from contracting by any law to which he is subject.
Categories: Statutory definitions