Which one is the correct sequence from the following as implied in the Indian Contract Act, 1872?

I. Offer or proposal
II. Contract
III. Promise
IV. Agreement
V. Acceptance

Select the correct answer:

Correct option is B

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The correct sequence as implied in the Indian Contract Act, 1872 is:

1. (A) Offer or Proposal: The process begins with an offer or proposal by one party to another.
2. (E) Acceptance: Once the offer is made, it needs to be accepted by the other party to proceed further.
3. (C) Promise: After the offer is accepted, it creates a promise between the parties. A promise is a proposal when accepted.
4. (D) Agreement: An agreement is formed when the promise is legally enforceable. According to Section 2(e) of the Indian Contract Act, every promise and every set of promises forming the consideration for each other is an agreement.
5. (B) Contract: Finally, when the agreement is enforceable by law, it becomes a contract. As per Section 2(h) of the Act, a contract is an agreement enforceable by law.

Information Booster
In contract law, the sequence is crucial for understanding how legal obligations arise between parties. The sequence starts with an offer, followed by acceptance, which creates a promise. When this promise is supported by consideration and is enforceable by law, it forms an agreement. If the agreement meets all the essential elements of a valid contract (such as free consent, lawful object, capacity of parties, etc.), it becomes a binding contract.

Additional Knowledge
Understanding the differences between these concepts is key:

• Offer (Proposal): A proposal by one party to another, intending to create a legal obligation upon acceptance.
• Acceptance: The expression of assent to the terms of the offer, leading to a promise.
• Promise: The result of the acceptance of an offer.
• Agreement: A promise or set of promises forming consideration for each other.
• Contract: An agreement that is legally enforceable.