AGREEMENT


Agreement -

 The term ‘agreement’ given in Section 2(e) of the Act is defined as- “every promise and every set of promises, forming the consideration for each other”.

To have an insight into the definition of agreement, we need to understand promise.
Section 2 (b) defines promise as-

“when the person to whom the proposal is made signifies his assent there to, the proposal is said to be accepted. Proposal when accepted, becomes a promise”.
The following points emerge from the above definition :

1. when the person to whom the proposal is made

2. signifies his assent on that proposal which is made to him

3. the proposal becomes accepted

4. accepted proposal becomes promise

Thus we say that an agreement is the result of the proposal made by one party to the other party and that other party gives his acceptance thereto of course for mutual consideration.
 
            Agreement = Ouer/Proposal + Acceptance

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