Section 2 of ICA : Section 2: Interpretation-Clause

Explanation using Example

Imagine that Rita, a homeowner, wants to have her house painted. She contacts a local painter, Bob, and tells him that she will pay him $2,000 to paint her house. Rita's statement is a proposal as per Section 2(a) of the Indian Contract Act, 1872.

Bob agrees to the job for the stated price, thus accepting Rita's proposal, making it a promise as mentioned in Section 2(b).

In this scenario, Rita is the "promisor" and Bob is the "promisee" according to Section 2(c).

The $2,000 payment is the consideration for Bob's promise to paint the house, as described in Section 2(d).

Rita's promise to pay and Bob's promise to paint are considerations for each other, forming an agreement as per Section 2(e).

Since both promises are part of the consideration for each other, they are reciprocal promises, as defined in Section 2(f).

If Rita and Bob's agreement had no legal standing, it would be void under Section 2(g), but since it is enforceable by law, it constitutes a contract as per Section 2(h).

If there was a term in the agreement that allowed only Rita to cancel the contract without allowing Bob the same right, it would make the contract voidable at Rita's option, as per Section 2(i).

Should a new law come into effect that prohibits private house painting for environmental reasons, their contract would become void as it would cease to be enforceable by law, in line with Section 2(j).