Intent to Create Legal Relations Cases Flashcards
facts in Fleming v Beevers AND category
SOCIAL
A de facto couple buys a Queenstown property as tenants in common (each with a 1/2 share) and agree to leave their half to each other in their Wills. Mr. Beever dies without changing his will, and Miss Fleming sues his estate for breach of contract, claiming their agreement to update their Wills was binding.
Was there an intent to create legal relations?
yes there was an intent to create legal relations as the parties took steps beyond just preparing for the contract, showing their intention to create legal relations. The value of the consideration can indicate their intention to establish a legal relationship
what are the facts in Ashton v Pratt and the category
SOCIAL
Ms. Ashton was an escort to Mr. Pratt who promised to support her financially in return for her being his mistress. When Mr. Pratt died she sought to enforce his contract.
Was there an intent to create legal relations?
no there was an intent to create legal relations as services Mrs. Pratt was providing was contrary to legal policy, and overall significant lack of certainty.
what were the facts in Fletcher Challenge Ltd v ECNZ and category
GAS SHARES, HEADS
COMMERICIAL
Two large companies enter into negotiations to transfer shares in a gas field and a head of agreement was drafted.
Was the head of agreement legally binding?
NO the head of agreement wanst legally binding because the heads of agreement had not been finalized into a formal contract. The parties did not agree on the contract terms, so the necessary certainty for the heads of agreement to be enforceable was not achieved. It was just an agreement to negotiate further in the future.
what was the facts in Tower Insurance v Nicon Ltd and category
COMMERCIAL
Nicon, a demolition contractor in Christchurch, filed a lawsuit against Tower Insurance, which had insured several properties that were damaged in the Christchurch earthquakes
Was the head of agreement legally binding?
yes, the head of agreement was legally binding, The agreement was meant to take effect immediately and did so, meaning the parties relied on the heads of agreement (HOA), eliminating the need for a later contract. The heads of agreement cannot be used to escape legal obligations.
what are the facts of Deng v Zheng and category
HYBRID
Deng and Zheng had a long business relationship in property development and construction. They agreed to end their partnership, but when they tried to separate their interests peacefully, it didn’t work out, and they ended up in court.
The social context may clarify the intent behind a commercial relationship. The Supreme Court highlighted that intent depends on the specific practices of the family or relationship, requiring evidence of their operations. This is challenging when commercial and social elements overlap. Given the long, informal working relationship, the court considered the facts, terms, actions, and cultural factors, noting that culture can influence intent.
