All India Bar Examination (AIBE) 5-V Previous Year Question Papers with Answers

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96.

Intention not to create a legal obligation was clear from the conduct of parties which among the popular cases deals on the topic.

A: Balfour v. Balfour
B: Donogue v. Stevenson
C: Derry v. Peek
D: Birch v. Birch

The answer is: A

Explanation

The correct option is A: Balfour v. Balfour.

This is a famous case in contract law that established the principle that there must be an intention to create legal relations for a contract to be valid. In this case, the husband agreed to pay his wife a monthly allowance while they were living apart, but later stopped doing so. The wife sued him for breach of contract, but the court held that there was no contract between them, as they did not intend to create a legally binding obligation by their agreement. The court considered the domestic and social context of their agreement, and found that it was a mere arrangement based on love and affection, not law. The court also noted that it would be undesirable to interfere with the personal affairs of married couples by enforcing such agreements.