Question

A proposal when accepted becomes _________:

• A. Promise under Section 2(b);
• B. Agreement under Section 2(e);
• C. Contract under Section 2(h);
• D. None of the above;

Hint:

Proposal + Acceptance = Promise; Promise + Consideration + Enforceability = Contract.

Answer 1

The Correct Option is A

Step 1: Understanding the Definition of Proposal and Promise:
According to Section 2(a) of the Indian Contract Act, when one person signifies to another his willingness to do or abstain from doing something, it is called a proposal. When that proposal is accepted, it becomes a promise as per Section 2(b).
Step 2: Legal Explanation:
Section 2(b) states: “When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal, when accepted, becomes a promise.” This marks the first step in the creation of a binding contract.
Step 3: Example:
If A proposes to sell his car to B for ₹2,00,000, and B accepts the offer, A’s proposal becomes a promise. Their mutual promises may later constitute a contract once all legal requirements are satisfied.
Step 4: Final Conclusion:
Hence, the correct answer is (A) Promise under Section 2(b), since acceptance of a proposal transforms it into a promise.