Intention to create legal creations

Question 1

how do you show intention to create legal relations

Answer 1

it can be expressed (in writing) or it can be a verbal agreement and/or by implications (by actions)
we need to make contracts for both commercial, social and domestic reasons

Question 2

how can you show intention to create commercial agreements

Answer 2

presumption is in favour of intention to create legal relations but there are some exceptions for this rule

Question 3

what are the exceptions for the rule of presumption in commercial agreements

Answer 3

• gentleman’s agreements (not a formal or legal agreement)
• subject to contract

Question 4

jones v vernon pools

Answer 4

• gentleman’s agreement
  there was no intention to create legal relations as stated in the contract

Question 5

chillingworth v esche

Answer 5

• subject to contract
  some agreements may be subject to a contract

Question 6

explain social and domestic agreements

Answer 6

there is a presumption in contract law that domestic and social agreements are not intended to be legally binding

Question 7

balfour v balfour

Answer 7

agreement was made at an amicable point in the relationship so no intent to create legal relations

Question 8

merritt v merritt

Answer 8

legally binding as the agreement was made after they had a divorce

Question 9

simpkins v pays

Answer 9

agreement between friends to share winnings was considered more than a social agreement

Question 10

wilson v burnett

Answer 10

that fact that they kept having to ask if she will share the winnings suggested the original agreement was never meant to be legally binding

Question 11

parker v clarke

Answer 11

there was a legally binding agreement as they gave up their security which indicated that the agreement was intended to be legally binding