Assertion (A): In the case of Krill vs Henry the validity of an agreement entered between a husband and wife was in question.

Reasoning (R): According to the Indian Contract Act, 1872, an agreement that is enforceable by law is a contract.

A is false but R is correct.

In a leading case Balfour v. Balfour (1919, 5 KB 571), the validity of an agreement entered between a husband and wife was in question. The decision clearly shows that agreements that create a legal obligation are only contracts and those agreements that do not intend to create legal relationship are not contracts.

According to the Indian Contract Act, 1872, (referred to as the ICA) an agreement that is enforceable by law is a contract (Section 2(h)). An agreement, in simple words, is a promise. All agreements are not contracts.