ICLR

Question 1

1. Commerical/Business Contracts have a presumption that there…

Answer 1

IF RELEVANT: Commercial/Business Contracts have a presumption that there IS an intention to create legal relations, and so are legally binding (Esso Petroleum v Customs and Excise).

Question 2

2. This presumption can be rebutted when clear words…

Answer 2

This presumption can be rebutted where clear words are used to show no legal intent (Edwards v Skyways), such as ‘act of goodwill’ or ‘binding in honour/’gentlemen’s agreement’ (Jones v Vernons Pools)

OR

Where the words used are too vague to be a specific promise (‘letter of comfort’ – Kleinwort Benson v Malaysian Mining).

Question 3

3. The party trying to establish no legal intent has the burden…

Answer 3

The party trying to establish no legal intent has the burden of proving that the rebuttal applies, which in this case is [ eg. D].

Question 4

4. Contracts involving free gifts and…

Answer 4

Contracts involving free gifts and competition prizes are legally binding (McGowan v Radio Buxton, Esso Petroleum v Customs and Excise).

Question 5

5. Domestic/Social Contracts, such as between…

Answer 5

[IF RELEVANT] Domestic/Social contracts, such as between family members or friends, have a presumption that there is NO intention to create legal relations, and so are not legally binding (Balfour v Balfour, Jones v Padavatton).

Question 6

6. This presumption can be rebutted where there is a commerical basis to the contract…

Answer 6

This presumption can be rebutted where there is a commercial basis to the contract usually involving money changing hands, the basis is no longer ‘love and affection’ (Merritt v Merritt), and the parties acted on the promise (Simpkins v Pays, Parker v Clark).

Question 7

7. Apparent Domestic Arrangements…

Answer 7

Apparent domestic arrangements may in fact be held to be business arrangements if they go beyond “social kindness” (Albert v Motor Insurer’s Bureau).

Question 8

8. Pre - Nuptial Agreements are…

Answer 8

Pre-nuptial agreements are increasingly seen by the courts as legally binding (Granatino v Radmacher).

Question 9

9. Where Clear Words are used to Show No Legal Intent, such as…

Answer 9

Where clear words are used to show no legal intent, such as ‘act of goodwill’, a contract between family members may not be legally binding even if it has a commercial basis.

Question 10

10. The party trying to establish legal intent has the burden of proving…

Answer 10

The party trying to establish legal intent has the burden of proving that the rebuttal applies, which in this case is [ eg. C].

Here…