CL: Intention, Capacity, Consuderation & Privacy Flashcards
5.1: when will a contract only be formed
If both parties are deemed to intend the agreement to be legally binding
5.1: What is the doctrine of privity of contract ?
Any person who is not one of the parties to a contract can’t take legal action under the contract
Even if a contract is made for the benefit of a person, that person can’t usually enforce it if he is not one of the parties
5.2: What is the agreement to be legally binding ?
The parties must intend that the agreement should impose legal obligations and legal rights on them
Both sorties must have the intentions to create legal relations
5.2.1: agreements in social, domestic and family arrangements
When arrangement is made between a family, social or domestic settings courts don’t usually intervene and met them sort out their own arrangements. Assuming that both parties didn’t intend for the agreement to to be legally binding between them
Eg: Balfour v Balfour
Jones v Padavatton
Hadley Vs Kemp
5.2.1.1: can presumption that parties that did not intend for creation of legal relations be rebutted
Yes by clear evidence of a contrary intention
The court will consider the intentions of the parties, the content of agreement and any other factors surrounding their circumstances
Eg: Simpkin v Pays
Robertson v Anderson
5.2.1.1: Agreements in family members who put their financial security at risk ?
Courts usually find that the parties did intend to create a legally binding agreement
Eg: Parker v Clarke
5.2.1.1: Agreements between husbands and wives in a commercial nature or if sorties are separated
These are agreements are created with intention to create legs, relations
Eg: Merritt vs Merritt
5.2.2: intentions to create legal relations in commercial or business agreements
It is presumed that when entering commercial or business agreements their is intention to create legal relations
When free gifts are involved in commercial agreements to promote business or earn prizes through competition it is assumed that their is intention to create legal relations
Eg: Esso Petroleum ltd vs Commissioners of Customs and Excise
5.2.2.1: What is an honour close in terms of rebutting assumptions of legal relation in business
Intentions to create legal relationships in commercial or business agreements can be rebutted with an honour clause
It states that an agreement is not legally binding on the parties
Eg: Rose and Frank vs Crompton Bros Ltd
Jones v Vernon’s pools
5.2.2.2: What is a comfort letters ?
A company or other person has an interest in a business they may write a comfort letter
A lender encouraging the lender to extend credit to the business by stating it’s business will has the ability to pay its debts
It is presumed that comfort letters are not legally binding
Eg: Kleinwort Benson vs Malaysia
5.2.2.3: Ambiguity in business and commercial contracts pertaining legal relations
If there us ambiguity pertaining the intentions to create legal relations we presume that there us an intention unless the party is able to show that the agreement us not legally binding
5.4: Does English law enforce gratuitous promises?
No unless made under deed
Meaning that a promise to give or do something without return is not legally binding
5.4.1: Define consideration ?
Consideration is sometimes difficult to define
Consideration is the giving if a benefit or the suffering of a loss
5.4.2: exchange of consideration
For a contract to be legally binding there must be considerations on both parties
In contracts both parties are promisors and promisees
5.4.3: What is executors consideration ?
Where there is a promise to do something in the future ?
5.4.3: What is executed consideration ?
Consideration that has already been completed
5.4.4: What is past consideration ?
If a promise has been made after an act has been done and not considered as consideration in the eyes of the law
Eg: Re McArdle
5.4.4.1: is a request with an implied promise to pay a consideration
Yes the completion of the service is consideration
Eg: hiring a taxi
Implied promise it pay before the act is completed
5.4.4.1: what are the conditions for the rule of implied promise to pay to apply
- The act must have been carried out at the request of the promisor
- Both parties must contemplate that payment is going to be made for the service
- If the payment had been promised before the act then the contract would have been legally enforceable
Eg: Pao On v Lau Yiu Long
5.4.5:
