I signed a settlement agreement on a stamp paper worth ₹100 during divorce discussions with my spouse. This agreement outlined terms for separation and financial settlement. However, they rejected the offer later, kept the document, and filed a criminal case against me. This agreement contains some statements that could be used against me if considered an admission of guilt. Am I legally bound by the terms of this agreement even though my spouse never formally accepted or signed it? Does the Indian Contract Act apply to such a settlement agreement?
Best Answer
The Indian Contract Act applies to settlement agreements, requiring acceptance and consideration for them to be binding. Since your spouse did not accept the agreement formally, you’re not legally bound by it. The settlement agreement on stamp paper is not legally enforceable without mutual acceptance.
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