Formation - Legal Relations

Question 1

Do domestic and social agreement have legal intention?

Answer 1

No

Question 2

Do commercial/business arrangements have legal intention?

Answer 2

Yes

Question 3

What is the POL from Balfour vs Balfour?

Answer 3

Agreements of a couple living together in one household will not have legal intention

Question 4

What is the POL from Merritt vs Merritt?

Answer 4

Parties had separated therefore the intention was presumed

Question 5

What is the POL from Jones vs Padavatton?

Answer 5

Mother gave allowance to daughter to give up her job and then later bought her a house, they argue and the mother seeks repossession of the house, second agreement was not contractual as no intent

Question 6

Under what circumstances are agreements usually legally binding?

Answer 6

When money is exchanged

Question 7

What is the POL from Simpkins vs Pays?

Answer 7

Lodger and 2 household members enter competitions in lodgers name, paying an equal share of entry money, they were entitled to share the winnings

Question 8

What is the POL from Parker vs Clarke?

Answer 8

Young couple sell their house to move in with an older couple - promised the younger couple would inherit the house upon death but they fell out and the young couple asked to leave. Giving up house indicated legally binding

Question 9

What is the POL from Wilson 2007?

Answer 9

Agreement to share lottery winnings between friends was given intention

Question 10

What is the POL from Rose and Frank?

Answer 10

Commercial presumption can only be rebutted with express terms

Question 11

What is the POL from Sadler vs Reynolds?

Answer 11

If the agreement falls between the commercial and social arrangement, the onus is on the claimant to prove contractual intention

Question 12

What is the POL from McGowan vs Radio Buxton?

Answer 12

Prize of a Renault car turned out to be a toy car - judge said there was intention to create legal relations so they were liable

Question 13

What is the POL from Edwards vs Skyways?

Answer 13

An attempt to avoid making an ex gratia payment failed

Question 14

What is the POL from Esso Petroleum vs C&E?

Answer 14

Offer of free gifts to promote a business can be legally binding - World cup coins with every gallon of petrol

Question 15

What is the POL from Jones vs Vernon Pools?

Answer 15

Clause saying no legal relationship upheld when the company lost his winning coupon

Question 16

What is the POL from Kleinwort Benson vs Malaysian Mining?

Answer 16

‘Comfort letters’ also do not give rise to a legal obligation - a letter stating intention to ensure they did not run out of funds was no guarantee