Home › CMA Foundation › businesslaws › Essential Elements of a Contract › A "social agreement" of domestic nature (e.g. fa…
A "social agreement" of domestic nature (e.g. father promising son ₹1 Lakh on passing CA exam) is generally:
AVoidable at son's option
BAlways enforceable in family court
CNot a valid contract — domestic agreements lack legal intent
DQuasi-contract
Answer & Solution
Correct answer: C. Not a valid contract — domestic agreements lack legal intent
1. Per OCR example: "A Father promised to pay his son a sum of ₹ 1 Lakh if the son passed C.A. examination in the first attempt...The son cannot recover the amount...An agreement of domestic nature cannot be considered as a Valid Contract."
2. Lack of intent to create legal relationship.
3. Balfour v Balfour rationale applies.
_Source: ICMAI BoS CMA Foundation Paper 1 (FBLC) — Paper1_07042026.pdf, Module 2 §2.1 (page 51)_