It determines the circumstances in which the commitments of the Contracting Parties are legally binding. Pursuant to paragraph 2(h), the Indian Contracts Act defines a contract as a legally enforceable agreement. The doctrine of „contractual effect“ means that a contract is only a contract between the parties and no third party can bring a legal action, i.e. a third party of a contract cannot sue. The following are the exceptions to the legal quality of contract rule: According to paragraph 2(e) of the Contracts Act, any promise or set of promises that constitute consideration for one another is an agreement. .