Balfour v Balfour

Facts

A husband working abroad promised his wife an allowance. They were still living as a married couple when the promise was made. She later sued on it.

Issue

Did they intend a legally binding contract?

Held

No. Domestic arrangements are presumed not to create legal relations.

Principle

A family promise, made while the household is intact, is not a contract unless the contrary is shown.

Why it matters

It is the starting presumption for domestic agreements.

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