Intention To Create Legal Relations

Question 1

Intention to create legal relations

Answer 1

Whether the parties were willing to take each other to court if the contract was breached

Question 2

Business agreement

Answer 2

Presumed to be legally binding (Esso v customs)
However a pre contractual statement with no clear promise (letter of comfort) is not intention to create legal relations (kelinwart v mining corp)
If it’s a so called gentleman’s agreement it will only be bound in honour not law (Jones v vernons pools)

Question 3

Situations where it appears there are no ITCLR

Answer 3

An ex gratia voluntary payment (Edward v skyways)
Free gifts (Esso v customs and excise)
Competition (McGowan c radio Buxton)
Letter of comfort (kleinwort v MMC)

Question 4

Half way house

Answer 4

Burden of proof is on the claimant to show that there was intention to create legal relations (Sadler v Reynolds)

Question 5

Social and domestic agreements

Answer 5

These are presumed not to be legally binding (Balfour v Balfour) (Jones v padvatton)
This presumption is rebutted if the parties are family/friends but not contracting on a domestic basis (Snelling v Snelling)
The domestic relationship has broken down or it is another I I payed it may break down (merrit v merrit)
Where there has been a reliance on the contract (Parker v Clarke) (simpkins v pays)