What is Agreement?

An Agreement is a promise between two entities creating mutual obligations by law. Section 2(e) of the Indian Contract Act, 1872 defines an agreement as ‘Every promise and every set of promises, forming the consideration for each other, is an agreement’.

Different Agreement ingredients


There need to be two or more parties to form an agreement.


When a proposal is accepted, it becomes a promise. [Section 2(b)]


It is the price for the promise. It is the return one gets for his act or omission. [Section 2(d)]

Offer/ Proposal

When a person signifies to another his willingness of doing or omitting to do something with a view to obtain other’s assent. [Section 2(a)]


When the person to whom the proposal is made signifies his assent for the same thing in the same sense as proposed by the offeror. [Section 2(b)]

The agreement should not expressly be declared to be void

There are certain kinds of contracts which are expressly declared by The Indian Contract Act, 1872 to be null and void. The following are some of the agreements which are not enforceable in the eyes of law.


  • Agreements without consideration except it is written and registered or is a promise to compensate for something done or is a promise to pay a debt barred by limitation law.
  • Agreements in restraint of marriage
  • Agreements in restraint of trade
  • Agreements in restraint of legal proceedings
  • Agreements void for uncertainty
  • Agreements by way of wager
  • Agreements contingent on an impossible event
  • Agreements to do impossible act

Types of


There are various types of contracts that are formed voluntarily via civil obligations. They are as follows:

Adhesion Contracts

These types of contracts are those which are formed by the stronger party. It is a sort of, “Opt for it or do not” contract. The stronger party or the one that has the bargaining power leaves the other party with a choice whether to accept or reject the contract.

Aleatory Contracts

This type of contract involves a mutual agreement that comes into being after an unexpected occurrence, accident, or a natural calamity. In this type of contract both the parties have an element of risk. Fire or Car insurances are this type of contract.

Bilateral and Unilateral Contracts

Bilateral contracts involve two parties. Both parties are obliged to one another for performing or abstaining to perform any act. It is also called a two-sided contract as it involves two way promises. Meanwhile, unilateral contracts are those in which the promise is made by only one party. They consist of an offeror and offeree. The offeror makes a promise to perform an action and is bound by the law to do so. The offeree is not bound to the court even if he fails to execute the requested action because he does not promise anything at all.

Express Contracts

These contracts are those wherein the terms of the contracts are expressed clearly whether in written documents or orally.

Void and Voidable Contracts

 Void contracts are illegal from the very beginning and hold no validity under law. They are thereby un-enforceable. Voidable contracts are unlike void contracts in the sense that one party is bound by the contract and the unbound party is capable of terminating the contract as they are unbound to it.

A quasi-contract is unlike a real contract. Salmond defines quasi contracts as “there are certain obligations which are not in truth contractual in the sense of resting on agreement, but which the law treats as if they were”. It is important to remember that even though it is imposed by law, it is not created by the operation of the contract.

Implied Contracts

There are no oral or written terms in this type of contract. The contracts are assumed owing to the facts of the parties. If an individual visits a medical professional, he expects to be diagnosed for a disease or illness and be advised a cure. This is an implied contract and a patient is capable of suing a medical practitioner for malpractice.

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