Question

An agreement enforceable at law is _________:

• A. Enforceable acceptance;
• B. Accepted offer;
• C. Approved promise;
• D. Contract;

Hint:

Every contract is an agreement, but every agreement is not a contract — enforceability by law makes the difference.

Answer 1

The Correct Option is D

Step 1: Understanding the Definition of Contract:
According to Section 2(h) of the Indian Contract Act, 1872, “An agreement enforceable by law is a contract.” This means that every agreement that the law recognizes as binding upon the parties is a contract.
Step 2: Difference Between Agreement and Contract:
An agreement is defined under Section 2(e) as “every promise and every set of promises forming the consideration for each other.” However, not all agreements are contracts. Only those agreements that are legally enforceable (i.e., that meet all the essential elements such as free consent, lawful object, and consideration) qualify as contracts.
Step 3: Example:
If A agrees to sell his car to B for ₹2,00,000, and both consent freely, it becomes a contract because it is enforceable by law. However, if A agrees to sell liquor without a license, it remains a mere agreement and not a contract because it is not enforceable by law.
Step 4: Final Conclusion:
Hence, the correct answer is (D) Contract, because only agreements enforceable by law are contracts.