Q.Every promise and every set of promises forming the consideration for each other, is an :

The correct answer is (a) Agreement. This is the statutory definition of an agreement under the Indian Contract Act, 1872.

In the Tamil Nadu HSC Commerce syllabus, the basic building blocks of contract law are defined precisely:

• A promise is an accepted proposal (offer + acceptance).
• "Every promise and every set of promises forming the consideration for each other" is, by definition, an agreement. Hence (a) is correct.
• A contract is narrower — it is "an agreement enforceable by law." So every contract is an agreement, but only those agreements that are legally enforceable become contracts. …