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A promise with some consideration is called?
Agreement
Tender
Contract
None of above
Agreement
According to Section 2(e) of the Indian Contract Act, 1872, every promise and every set of promises, forming the consideration for each other, is an agreement. When a proposal is accepted, it becomes a promise, and with the addition of consideration, it establishes an agreement.
According to Section 2(e) of the Indian Contract Act, 1872, every promise and every set of promises, forming the consideration for each other, is an agreement. When a proposal is accepted, it becomes a promise, and with the addition of consideration, it establishes an agreement.
Agreement=Promise+Consideration
Contract=Agreement+Enforceability
The formation follows a logical sequence: Proposal + Acceptance = Promise. A Promise + Consideration = Agreement. When an agreement becomes enforceable by law, it matures into a Contract.
An agreement is a broader term than a contract.
Consideration is the 'quid pro quo' or something in return for the promise.
Section 2(h) of the Indian Contract Act defines a Contract as an agreement enforceable by law.
All contracts are agreements, but all agreements are not necessarily contracts.
Provides a clear legal framework for business dealings.
Ensures mutual obligations are defined.
Agreements without legal enforceability (like social agreements) are not binding.
Complex legal jargon can lead to litigation.
Business transactions
Employment contracts
Commercial trade agreements
Option B (Tender) is an invitation to offer, not a promise itself.
Option C (Contract) represents a higher stage of legal binding than an agreement.
Under Indian Law, the Indian Contract Act, 1872 governs these definitions.
A is correct тАФ A promise along with a valid consideration constitutes an agreement under the Indian Contract Act.
In competitive exams, always distinguish between 'Agreement' (Section 2e) and 'Contract' (Section 2h) as this is a frequently tested distinction in legal and management-related engineering exams.