Correct option is B
The primary distinction between a contract and a social agreement is the
intention to create a legal relationship. While social agreements (like promises between friends) are not intended to create legal obligations, contracts are formed with the intention of being legally binding and enforceable by law.
Information Booster:
In contract law, an agreement becomes enforceable when there is a clear intention by the parties to enter into a legal relationship. Social agreements, on the other hand, are not subject to legal enforcement as they lack this intention. For example, if two friends agree to meet for lunch, it is a social agreement with no legal consequences if one party fails to attend.
Additional Knowledge:
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Consideration (a): Consideration is something of value exchanged in a contract, but its presence does not necessarily distinguish a contract from a social agreement.
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Consensus ad idem (c): This refers to mutual agreement on the terms of the contract but is common to both contracts and some social agreements.
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Certainty of performance (d): Certainty of terms is essential for a valid contract, but the intention to create legal relations is what differentiates contracts from social agreements.
