Interpretation

In this Act the following words and expressions are used in the following senses , unless a contrary intention appears from the context :
(A) when one person signifies to another his willingness to do or to abstain from doing anything , with a view to obtaining the assent of that other to the act or abstinence, he is said to make a proposal .

(B) When the person to whom the proposal is amde signifies his assent thereto , the proposal is said to be accepted : a proposal , when accepted , becomes a promise .

(C) the person making the proposal is called the " promisor " and the person accepting the proposal is called the "promisee"

(D) When , at the desire of the promisor  , the promisee or any other person has done or abstained from doing , or does or abstains from doing , or promises to do or to abstain from doing , something , such act or abstinence or promise is called a consideration for the promise .
(E) Every promise and every set of promises , forming the consideration for each other , is an agreement .

(F) Promises which form the consideration or part of the consideration for each other are called reciprocal promises .

(G) An agreement not enforceable by law is said to be void .

(H) An agreement enforceable by law is a contract .

(I) An agreement which is enforceable by law at the option of one or more of the parties thereto , but not at the option of the other or oters , is a voidable contract ; and

(j) A contract which ceases to be enforceable by law becomes void when it ceases to be enforceable .