AGREEMENT
According to Sec.2(e) of Indian Contract Act, 1872, every promise and every set of promises,forming the consideration for each other, is an agreement. It is clear from the definition that promise is an agreement. According to Section 2(b) of Indian Contract Act, 1872, when a person to whom the proposal is made, signifies his assent thereto, the proposal is said to be accepted. A proposal, when accepted, becomes a promise. From this it is clear that an agreement is an accepted proposal. The process of definition shows that a contract is an agreement, an agreement is a promise and a promise is an accepted proposal. An agreement therefore comes into existence only when one party makes a proposal or offer to the other and that other signifies his assent thereto. In short every agreement is the result of a proposal from one side and its acceptability by the other.
VALIDITY OF AGREEMENT
According to Section 20 of the Indian Contract Act, 1872, an agreement caused by mistake of
facts are void i.e. if the mistake of fact is with regard to the subject matter.
According to Section 23 of the Indian Contract Act, 1872, an agreement is void if the object or
consideration is against the public policy.
According to Section 24 of the Indian Contract Act, 1872, an agreement is void if any part of a
single consideration for one or more objects, or any one or any part of any one of several
consideration of a single object, is unlawful.
According to Section 27 of the Indian Contract Act, 1872, an agreement in restraint of trade or
business or lawful profession is void. But a buyer can put a condition on the seller of goodwill not to carry on the same business provided the conditions are reasonable.
According to Section 28 of the Indian Contract Act, 1872, an agreement in restraint of legal
proceedings is void.
According to Section 29 of the Indian Contract Act, 1872, an agreement, the meaning of which is not certain or capable of being made certain are void.
