Certainty and intention to enter a legal relationship Flashcards
why is certainty needed
it is not possible to define the parties’ obligations and therefore can’t be an enforceable contract
Blue v ashley 2017
vague or incomplete agreements can indicate there was no intention for a legal relationship.
Scammell and Nephew Ltd v Ouston 1941
‘in order to constitute a valid contract the parties must so express themselves that their meaning can be determined with a reasonable degree of certainty.’
- must be sufficiently certain
What is a vague agreement
terms relating to important issues are capable of different meanings.
- Hillas v Arcos demonstrates how the surrounding facts an be used to work out what vague terms meant
- the courts must interpret it.
Trentham v Archital Luxfer 1993
if there has been performance, it can indicate and courts are more likely yo say that the parties did intend to have a contract.
May and Butcher v the King 1934
When an important term still had to be agreed, there is no contract
can a duty to negotiate in good faith be implied
A duty to negotiate in good faith cannot be implied. The key reasons are that it would be inconsistent with the parties’ intentions to act in their own self-interest and the lack of certainty about what ‘good faith’ might mean.
- Walford v Miles [1992]
What is the requirements of intention to create legal relations
- parties o
Parties to a social or domestic agreement
presumed to have no intention to enter into legal relations
- family, friends and personal erlations
the parties to a commercial agreement
presumed to have an intention to enter into legal relations.
what case is for agreements between spouses and equivalent
- Balfour v balfour 1919
- not enforceable because nobody expects them to be
- love and affection become subject to court rulings
- prenuptual are legally binding
what is the generla rule for parent and child agreements
Jones v Padavatton 1969
- no differnet than balfour v balfour
what is the general rule for social agreements
simpkins v pays 1955, not legally binding but can be rebutted
what is the general rule for commerical agreements
agreements between business are presumed to be made with the intention to be legally binding.
- Edwards v Skyways 1964
- but the facts, the interpretation of the terms, or the surrounding circumstances could mean there was no such intention.
Case for when a commerical agreement can deny legal presumption using expresses terms
Rose and Frank v crompton bros 1925
- term stated was binding in honour only
