Correct option is B
· Assertion (A) is true: According to Section 2(h) of the Indian Contract Act, 1872, agreements that are enforceable by law are contracts. This means that an agreement, once it satisfies the legal requirements, becomes a contract that can be enforced in a court of law.
· Reason (R) is false: While it's true that agreements not enforceable by law are generally not contracts, the term "void" specifically refers to agreements that are unenforceable from the start due to illegality or other factors. Not all unenforceable agreements are necessarily void; they could also be voidable, depending on the circumstances.
Information Booster:
· Contracts (Section 2(h) of the Indian Contract Act, 1872): This section defines a contract as an agreement enforceable by law. To qualify as a contract, an agreement must fulfill certain criteria such as lawful consideration, lawful object, free consent, and the parties' capacity to contract.
· Void Agreements (Section 2(g) of the Indian Contract Act, 1872): An agreement not enforceable by law is said to be void. Such agreements have no legal effect from the beginning. They differ from voidable contracts, which are initially valid but can be voided at the option of one of the parties.
Additional Knowledge:
1. Void vs. Voidable Agreements:
· Void Agreement: An agreement that lacks enforceability from the outset, such as an agreement to perform an illegal act, is void. It never becomes a contract because it lacks one or more of the essential elements required by law.
· Voidable Agreement: These are agreements that are valid and enforceable at the beginning but may become void at the discretion of one of the parties, typically due to reasons like coercion, undue influence, or misrepresentation.
2. Legal Enforceability: Enforceability is the cornerstone of a contract. Without legal enforceability, an agreement cannot be considered a contract. The law provides remedies for breaches of contract, which is why enforceability is crucial.
3. Examples of Void Agreements: Agreements to commit illegal acts, agreements made without consideration (unless under specific exceptions), or agreements made by parties not competent to contract (e.g., minors) are considered void.
4. Importance of Legal Definitions: The distinctions between void, voidable, and enforceable agreements are vital for understanding contractual obligations. These definitions help in determining whether an agreement can be upheld in court or if it can be rescinded by one of the parties.
