2.3 Impact of Different Types of Contracts
The agreement was binding. The Court of Appeal distinguished the case of Balfour v Balfour (HPH 202) on the grounds that the parties were separated. Where spouses have separated it is generally considered that they do intend to be bound by their agreements. The written agreement signed was further evidence of an intention to be bound.. In this case of husband and wife is a domestic agreement, they jointly owned a house. Husband left to live with another woman. They made an agreement (signed) that husband would pay his wife a monthly sum, and eventually transfer the house to her, if she kept up the monthly mortgage payments. When the mortgage was payed he refused to transfer the house. In this case, the nature of the dealings, and the fact that they were separated when the signed the contract, allowed the court to assume that this was more than a domestic arrangement. It is same in the case (Balfour v Balfour  2 KB 571) demonstrates the strong presumption that domestic agreements, even if framed in contractual terms, are not intended to create legal obligations. Mr Balfour agreed to pay his wife a sum of money for maintenance while he was posted to Ceylon. After they separated, Mrs. Balfour took action to hold him to his payments. The action failed because there was no indication that the arrangement was intended to be a contract.
.1 Difference between the Tortuous Liability and Contractual Liability. 3.1.1 Contract Law
Contract law is that body of rules that govern contractual agreements between persons or merchants. Contract laws outline what a person can or cannot include in a contract, and what the remedies are if a party breaches their contractual duties. For example: Silva contracts with James to purchase a van for $10,000. At the time set for performance (delivery and payment) if James fails to deliver the van, he has breached the contract and had contractual liability in the amount of the contract,...
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