What do you mean by Contract ?

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Q. What do you mean by Contract ?

Tamil Nadu DgeTamil Nadu HSC First Year (DGE) Commerce Board 2025Subjective· 2mImportance★★★★★

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A contract is an agreement that is enforceable by law (Section 2(h), Indian Contract Act, 1872): Contract = Agreement + Legal enforceability.

In the Tamil Nadu HSC Commerce syllabus (Elements of Contract), a contract is defined under Section 2(h) of the Indian Contract Act, 1872 as "an agreement enforceable by law."

Breaking this down:

An agreement arises when one party makes an offer (proposal) and the other party accepts it, creating a promise supported by consideration.
The agreement becomes a contract only when it is enforceable by law — that is, it creates rights and obligations that the courts will uphold. …

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Same / Similar Concept — real previous-year questions on the same or a closely similar concept, not this exact question.

CBSE 2023Set MARCH1 markMCQ
$Q. An agreement enforceable by Law is a ______.$
(a) Approved promise
(b) Enforceable acceptance
(c) Contract
(d) Accepted offer
›Reveal solutionSolution
An agreement enforceable by law is a contract, so the correct option is (c).

The elements of contract chapter in the Tamil Nadu HSC Commerce syllabus is based on the Indian Contract Act, 1872.

According to Section 2(h) of the Act, "An agreement enforceable by law is a contract." Thus, Contract = Agreement + Enforceability by law. …
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CBSE 2022Set MARCH1 markMCQ
$Q. The Indian Contract Act was established in the year ________.$
(a) 1873
(b) 1871
(c) 1874
(d) 1872
›Reveal solutionSolution

The answer is option (d) 1872.

The Indian Contract Act, 1872 is the principal law dealing with contracts in India. It came into force on 1st September 1872 and lays down the essentials of a valid contract — offer and acceptance, lawful consideration, capacity of parties, free consent, lawful object and an intenti …

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CBSE 2020Set MARCH1 markMCQ
$Q. Every promise and every set of promises forming the consideration for each other, is an :$
(a) Agreement
(b) Contract
(c) Offer
(d) Acceptance
›Reveal solutionSolution
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. …
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Q.What do you mean by Contract ?

Concept understanding — Meaning and Essential Elements of a Contract

Q.What do you mean by Contract ?

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