An agreement is defined in S.2(e). of the Indian Contract Act, 1872. Every promise and every set of promises, forming the consideration for each other is an agreement”. In other words, an agreement is an act in the eye of law whereby two persons being ad idem declare their common intention to do or not do to any act, deed or thing. Halsbury’s Laws of England, fourth edition Vol. 9, Para 206 defines: An agreement is the combined product of offer and acceptance for some considerations passed between them. Section:10 and 73 of Indian Contract Act say that it creates an outstanding obligation or legal liability.