Question:
Principle: A proposal (offer) should be made with an intention that after its valid acceptance, a legally binding promise or agreement will be created. The test for such intention is objective, judged from terms of the agreement and circumstances. Generally, social or domestic arrangements do not create legal obligations, while business arrangements do.
Facts: One morning during breakfast, 'X' (the father) says to 'Y' (his son), "I shall buy a motorbike for you if you get through the CLAT."
Principle: A proposal (offer) should be made with an intention that after its valid acceptance, a legally binding promise or agreement will be created. The test for such intention is objective, judged from terms of the agreement and circumstances. Generally, social or domestic arrangements do not create legal obligations, while business arrangements do.
Facts: One morning during breakfast, 'X' (the father) says to 'Y' (his son), "I shall buy a motorbike for you if you get through the CLAT."
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In contract law, social and domestic arrangements usually lack legal enforceability.
Updated On: Aug 11, 2025
- 'X' made a statement that resulted in an enforceable promise
- 'X' made a statement that resulted in a valid proposal
- 'X' made a statement that resulted in an enforceable agreement
- 'X' made a statement that did not result in any enforceable agreement
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The Correct Option is D
Solution and Explanation
The statement was made in a domestic context between father and son over breakfast. Social/domestic agreements are presumed not to create legal obligations unless proven otherwise ⇒ no enforceable agreement exists.
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