McGregor v. McGregor 1888 (Case Summary)

This case is a foundational decision in contract law that addressed the enforceability of agreements between spouses, particularly regarding domestic arrangements. The case established the principle that domestic arrangements made in the context of a marital relationship are presumed to create legal relations.

Facts of McGregor v McGregor

1. The plaintiff, Mrs. McGregor, and the defendant, Mr. McGregor, were a married couple who entered into an agreement.
2. The agreement stipulated that they would live apart, and Mr. McGregor would pay Mrs. McGregor a weekly allowance for her maintenance.
3. Mrs. McGregor agreed not to pursue any legal proceedings against her husband in return for the payments.
4. When Mr. McGregor stopped making the payments, Mrs. McGregor sued him for breach of the agreement.

Issues framed

1. Whether the agreement between the spouses was legally enforceable as a contract?
2. Whether the agreement has the requisite intention to create legal relations?

Judgment of McGregor v McGregor

The court examined the principles of contract law, particularly the requirement of an intention to create legal relations.

The court held that the agreement between the husband and wife was legally binding. Both parties provided consideration, meaning each party agreed to give or do something in exchange for the other’s promise, fulfilling a fundamental requirement for a valid contract.

The court ruled in favor of Mrs. McGregor, holding that despite the domestic context, the nature of their agreement indicated a clear intention to enter into a legally enforceable contract. The court recognized that when spouses separate or are about to separate, there is a presumption of intent to create legal relations in their agreements.