Home › CMA Foundation › businesslaws › Indian Contract Act 1872 › Under Section 2(e) of ICA 1872, an agreement is …
Under Section 2(e) of ICA 1872, an agreement is defined as:
AEvery signed document between two parties
BEvery promise and every set of promises forming consideration for each other
CA proposal accepted without consideration
DAny oral statement made in business context
Answer & Solution
Correct answer: B. Every promise and every set of promises forming consideration for each other
1. Sec 2(e) ICA 1872 covers agreements.
2. Definition per OCR: "Every promise and every set of promises forming the consideration for each other, is an agreement."
3. Reciprocal promises = agreement.
_Source: ICMAI BoS CMA Foundation Paper 1 (FBLC) — Paper1_07042026.pdf, Module 2 §2.1 (page 49)_
Related questions
In the formula "Contract = Agreement + Enforceability by Law", the term "Agreement" itselfAn agreement giving rise to which obligation gives rise to a contract?The Indian Contract Act 1872 was originally divided into four parts. Sections 76–123 dealtSection 2(a) of ICA 1872 defines a proposal/offer as a signification of:Section 2(h) of the Indian Contract Act, 1872 defines a contract as: