Question

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

• A. Agreement
• B. Contract
• C. Obligation
• D. Lawful promise

Hint:

An agreement (promise + consideration) becomes a contract only when it is legally enforceable (Section 2(h)).

Answer 1

The Correct Option is A

Under Section 2(e) of the Indian Contract Act, 1872, every promise and every set of promises forming the consideration for each other constitutes an agreement. A contract requires additional elements like enforceability. Thus, the correct answer is: \[ {\text{Agreement}} \]