Social Contract under Indian Contract Act

February 7, 2023

JUDGEMENT: In Balfour v Balfour, (1919) 2 KB 571, a husband agreed to pay £30 to his wife every month while he was abroad. Since he failed to pay the promised amount, his wife sued him for the recovery of the amount. However, it was held that she could not recover as it was a social agreement and the parties did not intend to create any legal relations. However, this does not mean that in family or social matters there cannot be contracts. The general presumption may be rebutted by adducing evidence to the contrary, i.e., by showing that the intention of the parties was to create legal obligations. Therefore, even in the case of agreements of purely social or domestic nature, there may be intention of the parties to create legal obligations.

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