Target Exam

CUET

Subject

Legal Studies

Chapter

Topics of Law

Question:

In which of the following case, the Court highlighted that for a Valid Contract it is important to create legal obligations on the parties?

Options:

Carlil vs Carbolic Smoke Ball Co.

Balfour vs Balfour

Lalman Shukla vs Gauri Dutt

Powell vs Lee

Correct Answer:

Balfour vs Balfour

Explanation:

The correct answer is Option (2) → Balfour vs Balfour

Balfour vs Balfour (1919) involved a husband and wife where the court ruled that the agreement between them did not constitute a legally binding contract because it lacked the intention to create legal relations. The case established that social and domestic agreements do not generally give rise to legal obligations, which is a crucial element in determining the validity of a contract.