2. Intention to Create Legal Relations

Question 1

What are commercial agreements?

Answer 1

Agreements between businesses, businesses and individuals, or individuals not in business.

Question 2

What is the presumption regarding intention to create legal relations in commercial agreements?

Answer 2

There is a strong presumption of intention to create legal relations.

Question 3

What is required to rebut the presumption of intention to create legal relations in commercial agreements?

Answer 3

A clear, express statement that the parties do not intend for the agreement to be legally binding.

Question 4

What are domestic agreements?

Answer 4

Agreements between family members or close friends.

Question 5

What is the presumption regarding intention to create legal relations in domestic agreements?

Answer 5

The presumption is that the parties did not intend the agreement to be legally binding.

Question 6

What is required to rebut the presumption of no intention to create legal relations in domestic agreements?

Answer 6

The facts must state otherwise.

Question 7

What is the case of Parker v Clarke about?

Answer 7

It concerns reliance and the creation of legal relations in a social type of agreement.

Question 8

What elements are required for an agreement to be legally binding?

Answer 8

Offer and acceptance, consideration, and intention to create legal relations.

Question 9

What is the presumption regarding intention to create legal relations in commercial agreements?

Answer 9

There is a strong presumption of intention to create legal relations.

Question 10

What is required to rebut the presumption of intention to create legal relations in commercial agreements?

Answer 10

A clear, express statement that the parties do not intend for the agreement to be legally binding.