WBJS (Prelims) – Legal Study

Important Definitions & Concepts – Indian Contract Act, 1872


1. Contract (Section 2(h))

Definition: An agreement enforceable by law.
Explanation: Only those agreements which are legally binding become contracts.


2. Agreement (Section 2(e))

Definition: Every promise and every set of promises forming consideration.
Explanation: All contracts are agreements, but not all agreements are contracts.


3. Proposal / Offer (Section 2(a))

Definition: Willingness to do or abstain from doing something to obtain assent.
Explanation: It is the starting point of a contract.


4. Acceptance (Section 2(b))

Definition: Assent to the proposal.
Explanation: Converts an offer into a promise when accepted.


5. Promise (Section 2(b))

Definition: Accepted proposal.
Explanation: Once accepted, a proposal becomes a promise.


6. Consideration (Section 2(d))

Definition: Something done or promised in return.
Explanation: Essential for validity; “no consideration, no contract” (with exceptions).


7. Void Agreement (Section 2(g))

Definition: Not enforceable by law.
Explanation: Has no legal effect from the beginning.


8. Voidable Contract (Section 2(i))

Definition: Enforceable at the option of one party.
Explanation: Valid until rescinded by the aggrieved party.


9. Express Contract

Definition: Formed by words (spoken/written).
Explanation: Terms are clearly stated.


10. Implied Contract

Definition: Formed by conduct or circumstances.
Explanation: No explicit words; inferred from actions.


11. Quasi-Contract

Definition: Obligation imposed by law.
Explanation: Not a real contract; prevents unjust enrichment.


12. Competency to Contract (Section 11)

Definition: Capacity of parties to contract.
Explanation: Must be major, of sound mind, and legally qualified.


13. Free Consent (Section 14)

Definition: Consent not caused by coercion, undue influence, fraud, misrepresentation, or mistake.
Explanation: Ensures fairness in agreements.


14. Coercion (Section 15)

Definition: Threatening or committing unlawful acts to compel agreement.
Explanation: Makes contract voidable.


15. Undue Influence (Section 16)

Definition: Dominating another’s will to gain advantage.
Explanation: Common in fiduciary relationships.


16. Fraud (Section 17)

Definition: Intentional deception.
Explanation: Makes contract voidable and gives right to damages.


17. Misrepresentation (Section 18)

Definition: Innocent false statement.
Explanation: No intent to deceive but affects consent.


18. Mistake (Sections 20–22)

Definition: Erroneous belief about fact.
Explanation: Bilateral mistake makes agreement void.


19. Contingent Contract (Section 31)

Definition: Depends on uncertain future event.
Explanation: Enforceable only on occurrence/non-occurrence of event.


20. Bailment (Section 148)

Definition: Delivery of goods for a purpose upon contract.
Explanation: Goods must be returned or disposed after purpose.


🎯 Exam Tip:

  • 📌 Focus on Section 2 definitions (VERY IMPORTANT)

  • 📌 Link definitions with practical examples

  • 📌 Practice problem-based questions

  • 📌 Revise frequently for retention