teju2000
10-12-07, 05:12 AM
An agreement is enforceable by law if it creates some legal obligation.
Legal obligation means parties to an agreement must be bound to perform their promise.
Example: X invites his friend Y to a dinner and Y accepts the invitation. If Y fails to turn up for dinner, X cannot go to the court to claim his loss.
Similarly, in case of domestic arrangements, parties to agreement do not intend to sue each other so as to make such agreements unenforceable by law.
In commercial or business agreements the usual presumption is that the parties intend to create legal relations.
Example: X offers to sell his car to Y for Rs 1,00,000. Y accepts this offer. Such an agreement between X and Y is a contract because it creates legal obligation. In this agreement, if X refuses to sell or Y refuses to buy, the other party can file a suit in the court of law for the breach of the contract.
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Legal obligation means parties to an agreement must be bound to perform their promise.
Example: X invites his friend Y to a dinner and Y accepts the invitation. If Y fails to turn up for dinner, X cannot go to the court to claim his loss.
Similarly, in case of domestic arrangements, parties to agreement do not intend to sue each other so as to make such agreements unenforceable by law.
In commercial or business agreements the usual presumption is that the parties intend to create legal relations.
Example: X offers to sell his car to Y for Rs 1,00,000. Y accepts this offer. Such an agreement between X and Y is a contract because it creates legal obligation. In this agreement, if X refuses to sell or Y refuses to buy, the other party can file a suit in the court of law for the breach of the contract.
// URL deleted - Posting URLs of sites other than Get Through Guides is not allowed
if you any query on F4 Subject, kinldy mail me....i like to interact with studnets...