Question

Directions: Read the following passage and answer the questions given below:

A contract is an agreement enforceable at law, made between two or more persons, by which rights are acquired by one or more to acts or forbearances on the part of the other or others. A contract is an agreement creating and defining obligations between the parties. The Indian Contract Act, 1872 lays down general principles relating to formation and enforceability of contracts; rules governing the provisions of an agreement and offer; the various types of contracts including those of indemnity and guarantee, bailment and pledge and agency. It also contains provisions pertaining to breach of a contract. The Indian Contract Act has defined ”Contract” in Section 2(h) as ”an agreement enforceable by law”. This definition indicates that a contract essentially consists of two distinct parts. First, there must be an agreement. Secondly, such an agreement must be enforceable by law. An agreement gives birth to a contract. As per Section 2(e) of the Indian Contract Act, every promise and every set of promises, forming the consideration for each other, is an agreement. Agreements relating to social matters in which the idea of bargain is absentand there is no intention to create legal relations are not contracts. To form a valid contract there must be: an agreement based on the
genuine consent of the parties, supported by a lawful consideration made for a lawful object, and between the competent parties. One
of the early steps in the formation of a contract lies in arriving at an agreement between the contracting parties by means of an offer and acceptance. When one party (the offeror) makes a definite proposal to another party (the offeree) and the offeree accepts it in its entirety and without any qualification, there is a meeting of the minds of the parties and a contract comes into being, assuming that all other elements are also present.

Agreements relating to social matters are _______ .

• A. Voidable contract
• B. Valid contract
• C. Partially valid contract
• D. Not a valid contract

Hint:

Social agreements, such as those between friends or family members, are generally voidable unless they have a clear intention to create legal relations.

Answer 1

The Correct Option is A

Agreements relating to social matters, which are typically not intended to create legal relations, are considered voidable contracts.

Answer 2

Agreements relating to social matters are not considered contracts under the Indian Contract Act, 1872 because they lack the intention to create legal relations. As per the passage and legal interpretation, such agreements are entered into without the expectation of legal consequences or enforceability.

Examples of social agreements include:
- A promise to meet a friend for dinner
- An agreement between family members to go on a vacation

Even though these agreements may involve mutual promises, they are not enforceable in a court of law because the parties do not intend them to carry legal obligations.

Correct Legal Classification:
Agreements relating to social matters are considered non-contractual. They are not enforceable under law and therefore are not contracts. Hence, the classification as a voidable contract is incorrect.

A voidable contract refers to a contract that is legally valid but may be rejected by one of the parties due to factors such as misrepresentation, coercion, undue influence, or fraud. This does not apply to social agreements.

Conclusion:
The correct completion of the statement should be:
Agreements relating to social matters are not enforceable under law.
They are not contracts, and certainly not voidable contracts.