formation- intention to create legal relations Flashcards
when will courts enforce a contract
only when there’s an intention to be legally bound
how is I.T.L.R assessed
it is assessed objectively, how does it look to the reasonable outsider
what is the assumption for social and domestic agreements
usually no intention to create a legal relation (Balfour v Balfour)
how can social and domestic assumption be rebutted
agreements made at the time of separation (merrit v merrit)
when is a social and domestic agreement likely to be legally binding
when financial security is put at risk (Parker v Clarke)
what form should things be in when in a social setting
it is best to have things in writing, as its difficult to prove legal intention (Wilson v Burnett)
what is the assumption in commercial agreements
usually is an intention to create a legal relation (Esso petroleum v commissioners of customs)
what is the case for I.T.L.R can still be present when items are given as gifts
Mcgowan v radio buxton
what does mere puff mean
for the purpose of attracting custom, usually exaggerated claims and are not intended to form a contract
what is a letter of comfort
a written assurance, usually given by a company in respect of its financial obligations to a bank (kleinwort benson)
are letters of comfort legally binding
no
what happens if social and commercial rellations overlap
e.g family/friends working together
the burden is on the claimant to prove that there was an intention to create a legal relation (Sadler v Reynolds)
- if financial security is at risk the courts will favour the claimant
