Social Agreement Is Not A Contract

When a wife lends money to her husband or when a father lends money to his daughter without explicitly creating legal relationships (for example. B use a loan agreement to formalize the agreement), there is no contract that obliges the borrower to repay. As far as commercial transactions are concerned, there is a strong presumption of a valid contract: these agreements, in which the parties have conveyed themselves as foreigners, are considered binding. However, “honor clauses” in gentlemen`s agreements are recognized as a regulation of the intention to create legal relationships, as in the pools of Jones v Vernon[13] (where the clause “This agreement is only honorific” was effective). Care must be taken not to formulate a clause in such a way as to try to exclude the jurisdiction of a court, because the clause is void, as in Baker v Jones.