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Question

Assertion :All contracts are agreements. Reason: An agreement enforceable by law is a contract.

A
Both Assertion and Reason are correct and Reason is the correct explanation for Assertion
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B
Both Assertion and Reason are correct but Reason is not the correct explanation for Assertion
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C
Assertion is correct but Reason is incorrect
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D
Both Assertion and Reason are incorrect
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Solution

The correct option is A Both Assertion and Reason are correct and Reason is the correct explanation for Assertion
According to Section 2(h) of the Indian Contract Act, 1872: " An agreement enforceable by law is a contract". Therefore, a contract is an agreement which creates a legal obligation that is a duty enforceable by law. For a contract to exist, agreement is essential. Without an agreement, there can be no contract.

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