Formation: Intention To Be Legally Bound Flashcards
What does “intention to be legally bound” examine?
Not all agreements result in binding contracts. The issue here is not whether the parties have reached an agreement but whether they intended their agreement to be enforceable, if necessary, in a court of law.
Give examples of arrangements which are enforceable and unenforceable in law
Unenforceable= family, social and domestic arrangements Enforceable= commercial agreements
What is meaning of the term “rebuttable presumption”?
The belief that something is true until it is contested.
For example, the principle in criminal law that someone is innocent until proven guilty
What does presumption of no contractual intention arise with?
- Social arrangements
- domestic arrangements
- agreements not involving patrimonial assets
- collective bargaining agreements
- “binding in honour only” clauses
are agreements between husband and wife generally enforceable?
no, for instance Balfour v Balfour 1919 - found that marriages may make arrangements for personal or household expenses but they do NOT amount to contracts
when WOULD an agreement between husband and wife be enforceable?
in contemplation of separation/divorce- Merritt v Merritt 1970; husband promised to transfer ownership of house to wife but failed to do so, held he had to.
what are patrimonial interests?
things of concrete money value. The courts only deal with things if it involves money
does the court deal with contracts not involving patrimonial interest?
no it does not
what is ‘agreement to agree’?
the intention to continue negotiation
are ‘agreements to agree’ enforceable?
no it is a well recognised principle of law that agreements to agree are void and unenforceable for uncertainty.
what are ‘lock- in agreements’?
they are another term for agreement to agree
what are ‘lock-out agreements’?
also known as “exclusivity agreements”, means agreement to not negotiate with third parties - Lord Ackner
are lock-out agreements enforceable?
they are if time is limited
what are the requirements of a lock out agreement to be enforceable?
- the agreement must oblige the seller not to negotiate with others
- for a fixed or defined period
- England only; payment must be made for the agreement
what is the case authority for lock in agreements?
Walford v Miles 1992
