“BALFOUR v.

BALFOUR: ANALYSIS”

ROUGH DRAFT SUBMITTED IN THE PARTIAL FULFILMENT OF THE COURSE

TITLED –

LAW OF CONTRACT

SUBMITTED TO:
Mrs. SUSHMITA SINGH
TEACHER ASSOCIATE

SUBMITTED BY:
NAME: KESHAV KUMAR
COURSE: B.A., LL.B (Hons.)
ROLL NO: 1737
SEMESTER: 2nd

CHANAKYA NATIONAL LAW UNIVERSITY, NYAYA

NAGAR, MITHAPUR, PATNA – 800001
INTRODUCTION

A contract has been defined as follows: Salmond defines a contract as “an

agreement creating and defining obligations between the parties”. Sir William
Anson observes, A contract is an two or more persons, by which rights are acquired
by one or more to acts or forbearances on the part of other or others”. According
to Sir Federick Pollock, “Every agreement and promise enforceable by law is a
contract”. Sec. 2(h) of the Indian Contract Act defines a contract as “An
agreement enforceable law”. These definitions resolve themselves into two
distinct parts: First, there must be an agreement. Secondly, such an agreement
must be enforceable bylaw and an agreement to be enforceable must be coupled
with obligation and the obligation has its source in law.

Any obligation, which arises independently of an agreement, cannot be the basis of

a valid contract. A domestic arrangement with no intention to create legally
binding relations will not constitute a contract, such as a promise by a father to
pay pocket money to his son. In the words of Lord Atkin, “The most usual form of
agreements, which do not constitute a contract, are the agreements made
between husband and wife”. They are not contracts because the parties do not
intend that they should be attended by legal consequences.

Mr. Balfour left his wife in England on medical grounds and left for Ceylon, the
place of his absence he promised to pay £30 P.M. to his wife until she returns.
Subsequently, he stopped sending money to her and decided to live apart. The
wife sued the husband the recovery of the amount promised for, on the ground
that her consent to the agreement enough to constitute valid consideration for the
contract. The court did not agree with the views of the wife and dismissed her
claim.

It was held that it was only a domestic arrangement and not a legal contract
because domestic arrangements are outside the realm of legal consequences
altogether. However, parties standing in a domestic or social relationship may
enter into an if they intend their agreements to have legal consequences Merrit v.
Merrit (1970).There contract results from a combination of agreement and
obligation. But it is not necessary that all agreements should create an obligation
between the parties to the agreements. An agreement may exist without any legal
obligation but a contract cannot. Agreements giving rise to social obligations will
not constitute binding contracts. Obligations arising from a trust or a decree or
from statutes do not fall within the scope of the Contract Act.
Thus, an agreement is the genus of which contract is the species, and therefore,
all contracts are agreements but all agreements are not contracts. Hence, “the
law of contracts is not the whole law of agreements nor is it the whole law of
obligations.
AIM AND OBJECTIVE

1. The researcher tends to analyze all essentials for the formation of contract.
2. The researcher tends to analyze in between the line about the meaning of
obligation for the formation of contract and how it related to intention to
create legal relationship.

HYPOTHESIS

1. The researcher presumption is that intension to create legal relation is one

of the important implied essential to form a contract.
2. The researcher presumption is that while making contract with near and
dear relatives, generally intention is absent.

RESEARCH METHEDOLOGY

The researcher will be relying totally on Doctrinal method only to complete the
project.

SOURCE OF DATA

The researcher will be relying on secondary sources only to complete the project

1. Primary Sources: Indian contract act, 1872

2. Secondary Sources: Books and websites

LIMITATION OF STUDY

The researcher has time limitation of time money and sources to find out the react
fact and circumstances of case related to “presence and absence of intention to
create legal relation”.

TENTATIVE CHAPTERIZATION

1. Introduction: Balfour vs. Balfour

2. Law of contract and its essential
3. Intention to Create Legal Relations
4. Intention: Objective or Subjective
5. Presumption of ‘Intention’—Domestic vs. Commercial Contracts
6. Conclusion
BIBILIOGRAPHY

BOOKS

1. LAW OF CONTRACT – Dr R K Bangia

2. CONTRACT AND SPECIFIC RELIEF – Avtar Singh
3. THE BASIC OF CONTRACT Harvard Law Review, Vol. 46, 1933, pp. 553, 575.
4. Law of Contracts and Tenders- T S Venkatesa Iyer