formation of contract: intention to create legal relations Flashcards
what is intention to create legal relations?
once offer and acceptance has taken place and consideration, courts need to identify whether the parties actually intended to form a contract; did they intend to create legal relations
intention can be express or implied
whats a business or domestic agreement?
when its unclear whether agreement is a domestic or business agreement, the burden of proof lies with the claimant to prove there was an intention to create legal relations.
business agreement are presumed to be what?
presumed to be legally binding
presumptions can be rebutted
sometimes contracts can be binding in honour only meaning?
sometimes contracts can be binding in honour only which means it not contractually enforceable
what was held In jones v Vernon pools
as C signed coupon meant there was no contractual obligation for the pools company to honour agreement
burden of proof lies with who?
burden of proof lies within the person who is trying to prove there is no legal intentions
what was held in in Edward v skywards
payment was legally binding couldn’t prove there was no itclr
are free gifts legally binding?
when a free gift is offered in order to promote a business, this can be legally binding
(Esso petroleum v commissioners of customers and excise)
what was held in Esso petroleum v commissioners of customers and excise
esso did have intention to create legal relations when they offered the gift as this was to attract more customers, had to pay tax on gift.
what do companies intend when prizes are offered in competitions
when prizes are offered in competitions, companies intend to create legal relations. (McGowan v Radio Buxton)
what was held in MC Gowan v radio buxton
there was intention to create legal relations, C had to be compensated
is a letter of comfort legally binding
a letter of comfort is not usually legally binding, document written by a libel source which provides insurance that an obligation will be fulfilled.
what was held in Kleinwort benson LTD v MMC
letter wasn’t legally binding, MMC weren’t obliged to do anything
