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. Â Â Â Â Â Â An agreement, and
2. Â Â Â Â Â Â Enforceability of an agreement.
In the form of an equation, it can be shown as under:
Contract = An Agreement + Enforceability of an agreement
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