Union of India - Section
Section
2 in The Indian Contract Act, 1872
2. Interpretation clause.—
In this Act the following words and expressions are used
in the following senses, unless a contrary intention appears from the context:—
(a)When
one person signifies to another his willingness to do or to abstain from doing
anything, with a view to obtaining the assent of that other to such act or
abstinence, he is said to make a "proposal";
(b)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";
(c)The
person making the proposal is called the "promisor", and the person
accepting the proposal is called the "promisee";
(d)When,
at the desire of the promisor, the promisee or any other person has done or
abstained from doing, or does or abstains from doing, or promises to do or to
abstain from doing, something, such act or abstinence or promise is called a
consideration for the promise;
(e)Every
promise and every set of promises, forming the consideration for each other, is
an agreement;
(f)Promises
which form the consideration or part of the consideration for each other, are
called reciprocal promises;
(g)An
agreement not enforceable by law is said to be void;
(h)An
agreement enforceable by law is a contract;
(i)An
agreement which is enforceable by law at the option of one or more of the
parties thereto, but not at the option of the other or others, is a voidable
contract;
(j)A
contract which ceases to be enforceable by law becomes void when it ceases to
be enforceable.
