What Is Agreement As Per Indian Contract Act

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. .