Section 2(h) of the Indian Contract Act, 1872, “An agreement enforceable by law is a contract.” In other words, an agreement which can be enforced in a court of law is known as a contract.
On analyzing this definition of contract, it appears that a contract must have the following two elements:
1. An agreement, and
2. Enforceability of an agreement.
In the form of an equation, it can be shown as under:
Contract = An Agreement + Enforceability of an agreement
48 Comments