Section 2(h) of the Contracts Act defines
contract as an agreement enforceable by law.
In other words, a contract is an agreement that binds the parties who enter into it and it can be enforced against one another .
It can be a contract to sell and purchase of land, a contract of leasing, insurance contract, etc.
However, not all agreements are contracts. For instance, a social agreement or agreements between family members. (It is also known as "domestic agreement"). These agreements are not
considered as contracts because the formations are not intended to bind the parties in law.
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