Intention to be Legally Binding

Question 1

Cases with No Intention

Answer 1

Belfour v Belfour (Divorce payments)
Biddle v Bentley (Gorse cutting)

Question 2

Case for Traditional Approach

Answer 2

Belfour v Belfour (Divorce payments)

Question 3

Cases for Intention

Answer 3

Parker v Clark (Niece aunty)
Welch v Jess (Fishing comp)

Question 4

Case for Modern Approach

Answer 4

Parker v Clark
Fletcher Challenge Energy v Electricity Corp of NZ (Gas shares purchase)

Question 5

What is the traditional approach?

Answer 5

That social agreements are assumed to be not intended to be binding. That corporate agreements are assumed to be intended to be binding.

Question 6

What is the modern approach?

Answer 6

The modern approach considers the overall context and specific facts to determine intention. In New Zealand, the courts have shifted towards assessing whether a reasonable person would conclude that the parties intended to create legal relations, focusing on factors such as the seriousness of the promise and the reliance on it.