intention Flashcards
intention to create legal relations
-Parties must intend to be bound by the legal obligations
- The difficulty is that this is not always stated which may lead to disagreements.
- What happens if there is a dispute? How is it resolved?
- What role do presumptions play?
- Commercial v Domestic/Social setting
Wilson and Another v Burnett (2007)
An agreement to share bingo winnings was held not to be legally enforceable as although they had agreed at the beginning of the evening to share any prize money over £10 it was just a discussion or chat i.e., there was no clear agreement and no intention to create legal relations
Balfour v Balfour (1919)
A husband, working abroad, promised to pay his wife a sum of money while he was away. The husband did not pay, and the wife sued. They were married at the time of the agreement. It was held to be an informal arrangement and not legally enforceable.
Merritt v Merritt (1970)
another case concerning a money payment from one party to another was held to be enforceable as the couple were separated and they
intended the agreement to have legal consequences.
Simpkins v Pays (1955)
where an arrangement between friends to enter a weekly competition was held to be legally binding as they each took turns to pay the entry costs and they agreed to divide any winnings equally. It was a joint enterprise into which each party contributed financially.
Rose & Frank Co v Crompton & Bros (1925)
The defendant appointed the claimant as sole distributor of his paper tissues in the USA. The agreement stated that it was not a formal legal agreement i.e., not legally binding and that it shall not be subject to legal jurisdiction in the courts. The defendant ended the agreement without notice and refused to accept orders made under the terms of the agreement.
It was held that there was no binding legally enforceable contract between the parties.
