Intention to create legal relations

Question 1

Presumption of domestic

Answer 1

Contracts made between family members have a rebuttable presumption that they are not legally binding

Question 2

Case for domestic presumption

Answer 2

Balfour V Balfour

Question 3

3 Ways a domestic presumption can be rebutted

Answer 3

1. If the parties are no longer acting on the basis of love and affection
2. If parties have acted on reliance of a promise
3. Where there is a commercial basis to the contract

Question 4

case for rebut through not acting on the basis of love and affection - domestic

Answer 4

Merritt V Merritt

Question 5

Case for rebut through reliance on a promise - domestic

Answer 5

Parker v Clark

Question 6

Case for rebut through commercial basis- domestic

Answer 6

Albert V Motor Insurers Bureau

Question 7

Presumption for commercial

Answer 7

There is a very strong rebuttable presumption that commercial contracts are legally binding

Question 8

Case for presumption for commercial

Answer 8

Calill V Carbolic Smoke Ball Comapany

Question 9

Three ways commercial presumption can be rebutted

Answer 9

1. Clear words are used to show no legal intent
2. When words used are not clear enough to amount to a specific promise
3. When a statement states there is no previous legal liability

Question 10

Case for clear words showing no legal intent - commercial

Answer 10

Jones V Vernon Pools

Question 11

Case for words not being clear enough to amount legal intent

Answer 11

Kleinwort Benson V Malaysia Mining