Question

    Under Section 2(b) of the Indian Contract Act, 1872, an

    "agreement" is defined as:
    A Any mutual promise Correct Answer Incorrect Answer
    B A proposal accepted creates an agreement Correct Answer Incorrect Answer
    C An oral contract between parties Correct Answer Incorrect Answer
    D A written contract only Correct Answer Incorrect Answer
    E A contract with consideration only Correct Answer Incorrect Answer

    Solution

    Section 2(b) defines "agreement" as "every promise and every set of promises, forming the consideration for each other." A proposal when accepted becomes an agreement (Sections 2(a) and 2(b) read together). An agreement need not be written (it can be oral) and may exist without consideration in certain cases as per Section 25. [Citation: Sections 2(a)-2(b), Indian Contract Act, 1872]

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