contract law(intention to create legal relations)

Question 1

what is Intention to create legal relations.

Answer 1

intention to create legal relations is an intention to enter into a legally binding agreement or contract

Question 2

what are social and domestic arrangements

Answer 2

contracts made between family members and sometimes friends. the presumption is that is not legally binding

Question 3

case study for social and domestic arrangements

Answer 3

Merritt v Merritt (1970):
Balfour v Balfour (1919):

Question 4

why must courts examine the real purpose of domestic and social arrangements

Answer 4

Sometimes families make arrangements that appear to be business arrangements because of the nature of what they are doing.

jones v pasavatton

Question 5

what are commercial agreements

Answer 5

Commercial contract law oversees the rights, duties, and liabilities of any parties entering into a business agreement

Question 6

presumptions of commercial agreements

Answer 6

presumed to be legally binding.
This is quite logical but does not take into account that the presumption can be rebutted by showing the opposite is the case.

Jones v Vernons Pools (1938):

Question 7

what can create problems in commercial agreements

Answer 7

prizes offered in competitions
McGowan v Radio Buxton (2001):

Question 7

what are letters of comfort

Answer 7

A letter of comfort is written assurance, usually provided by a parent company in respect of its subsidiary’s financial obligations to a bank.

Kleinwort Benson Ltd v Malaysian Mining Corporation (1989):

Question 8

what is burden of prr]oof in commercial agreements

Answer 8

The burden of proof in a business situation is on the person seeking to rebut the
presumption.

Edwards v Skyways (1969):