intention to create legal relation Flashcards
what case you use for the general approach
merritt v merritt 1970
what does lord Denning stated about M v M
“in all cases the court does not try to discover the intention by looking into the minds of the parties, looking at situation in which they more placed asks itself: would be reasonable people regard the agreement as intended to be binding”
what is a commercial agreement
where an agreement is made in a commercial context.
what is the presumption of commercial agreement
law raises a presumption that the parties do intend to CLR by the agreement
what is the presumption of social and domestic arrangements(agreement)
law raises a presumption that the parties do not intend to CRL
what happen in Sadler v Reynold 2005
burden of proof will fall on the party attempting to rebut the presumption that there was ICLR in a business relations
when can presumption be rebutted when parties do intent
rebutted by clear evidence that this was not the case when using a honourable clause or when a specific conditions is included as part a binding agreement
what case use honour clause
Jones v Vernon Pools 1938
what happen in jones v vernon pools 1938
P claimed to have won the football pools coupon stated that the transaction was “BINDING IN HONOUR ONLY”. it was held that P was not entitled to recover BC the agreement was based on honour of the parties land thus not legally binding
what is an express statement
that an agreement is intended to be binding in honour only the courts will usually allow it to take effect and so will not enforce agreement
example of specific condition is included as a part of a binding contract
a ‘subject to contract’ clause
what is an agreement to sell
subject to the contract being singed
what sales of houses with specific condition in a contract
a contract is to sell land is governed by the law of property act 1925 which stipulates that contracts to sell land must be evidenced in writing to be binding
where an agreement has be made when intention for further stages what should happen
any further stages of negotiations should be specially stated
case link to specific conditions in a contract
Newbury v sun microsystems 2013
what happened in Newbury v sun microsystems 2013
a letter from D offering to settle a dispute for a specific sum and letter of acceptance from C, amounted to a binding contract