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CA Foundation doubt

Case

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Asked by Sakshi8 Dec 2024543 views

1 answer

  1. Tamanna · 8 Dec 2024

    As per the provision of Indian Contract Act 1872, there must be an intention on the part of the parties to create legal relationship between them.Social or domestic types of agreement are not enforceable in court of law and hence they do not result in to contract. Here, as per the above provision of ICA, Radha can not sue or recover loss from her friends as it was a social agreement and the parties did not intend to create legal relations. If the party organised by Radha had been a CONTRIBUTOY 2023 New year celebration party, Radha can sue her friends for the loss incurred in the party as the agreement could have been CONTRIBUTOY is nature thus creating a legal relations between the parties.

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