Even though an agreement may exist, it has to be examined whether the parties intended to create a legally binding contract.
Generally, agreements between family members are not intended to be legally binding, while agreements between businesses are.
In Balfour, a couple moved back to England from Ceylon. The husband moved back to Ceylon and agreed to pay the wife support while ever they were not together, as long as she did not use his credit. He then posted a letter to her, telling her that they should not get back together. The wife began divorce proceedings and wanted to still get her allowance. The Court of Appeal stated that there is no contract as neither intended to bind themselves legally due to their relationship.
This supports freedom of contract – parties free to create a contract only where they wish to.
Historically, as women were seen as domestic, it has been argued that contracts entered into by women are not enforceable. This is not currently the case.
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References:
Cases Mentioned:
Balfour v Balfour [1919] 2 KB 571
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