Define Reciprocal Promises

Question: Define Reciprocal Promises. [MPJS 2003]

Find the answer to the mains question of the Law of Contract only on Legal Bites. [Define Reciprocal Promises.]

Answer

Under the Indian Contract Act, 1872, "Reciprocal Promises" are defined in Section 2(f). The definition of reciprocal promises is as follows:

When two or more persons agree to do something or refrain from doing something in exchange for each other, such agreements are termed as reciprocal promises.

In simpler terms, reciprocal promises refer to a situation where there is a mutual exchange of promises between two or more parties. Each party agrees to undertake a certain action or refrain from doing something, and this promise is made in consideration of the other party's promise to do the same.

For example, A agrees to sell a laptop to B for a certain price, and B agrees to pay the agreed amount to A. Here, A's promise to sell the laptop is reciprocated by B's promise to pay the price. Both promises are interdependent and form the basis of a valid contract.

Reciprocal promises are an essential element of a contract. When both parties have made reciprocal promises, there is a meeting of minds and a mutual understanding between them. This mutual agreement creates legally enforceable obligations, and if either party fails to fulfill their promise, the other party may seek legal remedies for the breach of contract.

Reciprocal promises in the Indian Contract Act signify a situation where parties agree to undertake certain actions or abstain from doing something, and these promises are made in consideration of each other, forming the basis of a valid contract.