Question: What is an agreement? Answer: The term “agreement” has been defined in Section 2(e) of the Indian Contract Act, 1872 as “every promise and every set of promises forming the consideration for each other.” The term “promise” has been defined in Section 2(b) of the Indian Contract Act, 1872 as “when the 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.”