Intention

Question 1

What is intention?

Answer 1

Whether or not the parties were looking to make an agreement legally binding or not.

Question 2

What is the presumption for social agreements?

Answer 2

The agreement is not binding.

Question 3

Discuss social agreements

Answer 3

Balfour v Balfour - A verbal agreement suggest little intention
Merritt v Merritt - A written agreement suggests there is intention.
Jones v Padvatton - A good relationship suggest little intention.
Simpkins v Pays - Giving up money shows intention
Parker v Clarke - Risking one’s financial situation suggests intention.

Question 4

What is the presumption for commercial agreements?

Answer 4

The agreement is binding, the parties must rebut this assumption.

Question 5

Discuss commercial agreements

Answer 5

Esso v CCE - Gaining a commercial benefit shows intention
Rose and Frank v Compton Bros - A written agreement that says the contract is legally binding suggests intention.
Jones v Vernon Pools - Written agreement said the contract was not legally binding.
Kleinwort Benson v MMC - A parties actions can prove there is no intention.
Edwards v Skyways - Where an agreement is ambiguous, courts will favour the presumption.

Question 6

What did Sadler v Reynolds say?

Answer 6

If it is unclear what type of agreement it is, it will be treated as a social agreement, unless a party can prove that it is commercial.