Section 31

Section 31 of the Indian Contract Act, 1872, deals with reciprocal promises. It states: "When two parties make mutual promises, then the contract consists of these mutual promises, and the consideration for the promise of one party is the promise of the other." This implies that when two parties make promises to each other, these promises are considered as the consideration for each other. For instance, if A promises to deliver goods to B, and B promises to pay a certain amount to A, these promises are reciprocal and form a valid contract. The section further explains that the promises may be expressed or implied, and they must be made with the intention of creating a legal obligation. The Indian courts have interpreted this section to mean that reciprocal promises must be clear, definite, and unambiguous, and that they must be made with the intention of creating a legally binding contract.