Formation of Contract 2

Question 1

between what parties are contracts not legally binding + case

Answer 1

• between relatives
• Social and Domestic Agreements are not contractual in nature
• Balfour v Balfour

Question 2

what was held in Balfour v Balfour

Answer 2

• In a marriage, couples may arrange personal or household expenses, but these arrangements aren’t considered contracts.
• While there may be what would typically be seen as consideration in a contract, the key difference is that the parties don’t intend for legal consequences to arise from these arrangements.

Question 3

what was held in Merritt v Merritt

Answer 3

• Enforceable contract
• Court looks at the situation which the parties are placed and ask ‘would a reasonable person regard the agreements as intended to be binding?’ - importance of intention objectively determined in context

Question 4

case for context is important

Answer 4

Robertson v Anderson 2003

Question 5

case facts for Robertson v Anderson 2003

Answer 5

• Pursuer and D were friends who played bingo together and verbally agreed to ‘go halfers’ if either friend won a bingo prize
• Anderson won £108,000 and declined to share it with her friend
• Held it was a legally binding contract