ACCA Corporate and Business Law (F4) Certification Practice Exam

The correct answer is supported by the context of legal principles concerning agreements made between individuals in domestic settings, particularly married couples. When a couple is separated, the dynamics change significantly; agreements made during this time may reflect a clearer intention to create legally binding obligations. In this case, if the transfer of title was part of a settlement relating to their separation, Florence may have grounds to enforce the agreement as it reflects an intention that goes beyond typical domestic arrangements.

The notion that agreements between married couples are inherently unenforceable does not apply when the parties are no longer living together. Moreover, the presumption that domestic arrangements lack the intention to create legal obligations often holds true while couples are living together; however, in a separation context, where individuals may prioritize clarity and legal protection, the opposite can occur.

Thus, when Florence made the arrangement to transfer the title during their separation, it is reasonable to conclude that this was intended to be a legally binding agreement, allowing her the ability to enforce it. The emphasis is on the change in circumstances due to the separation, which implies a different understanding of their agreement compared to when they were together.