Multiple choice

Fact: Mr. Balfour was employed in Ceylon. Mrs Balfour owing to ill health had to say in England and could not accompany him to Ceylon. Mr. Balfour promised to send her £30 per month while he was abroad. But Mr. Balfour failed to pay that amount. So Mrs Balfour filed a suit against her husband for breach of contract? Issue: Is Balfour liable for breach of contract?

  1. Mr Balfour is not liable because the intention not to create a legal obligation was clear from the conduct of the parties.

  2. Mr Balfour is liable for breach of contract.

  3. No conclusive decision can be drawn as it is a private affair of husband and wife
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A Correct answer
Explanation

Balfour v Balfour established that domestic agreements between spouses are presumed NOT to create legal intentions. The key question is whether a reasonable person would believe the parties intended to be legally bound. Here, the husband's promise to pay £30 monthly during his absence was a domestic arrangement with no indication of legal intent.

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