Intention To Create Legal Relations

Question 1

Presumption for intention to create legal relations

Answer 1

Presumed to exist in a business agreement but not in a social or domestic one

Question 2

Case where a business did not have intention to create legal relations

Answer 2

Jones v Vernon Pools - “binding in honour only”

Question 3

Who is burden of proof for proving itclr for business arrangements on?

Answer 3

Person seeking to establish that there is no legal intention - Edwards v Skyways
Objective - Edmunds v Lawson

Question 4

Can itclr be found when promoting a business?

Answer 4

Yes - Esso Petroleum v Commissioners of Custom and Excise, free gift with petrol
McGowan v Radio Buxton, prize for radio competition

Question 5

Case involving letter of comfort

Answer 5

Kleinwort Benson v Malaysian Mining Corporation - comfort letter was not legally binding

Question 6

‘Halfway house’ case for itclr

Answer 6

Sadler v Reynolds - burden was on journalist to probe there was itclr

Question 7

Case to say itclr more likely to be found at a point where the relationship is not amicable

Answer 7

Balfour v Balfour - claim failed as agreement was made at amicable point of relationship
Merritt v Merritt - agreement was made after separation so itclr was evident
Jones v Padavatton - when first arrangement was made the two were close so claim failed

Question 8

Case to say itclr more likely to be found if money changes hands

Answer 8

Simpkins v Pays - lottery ticket shared
Wilson v Burnett - other women asked if she would share which indicates there was no agreement

Question 9

Case to say if a person puts their security at risk itclr more likely

Answer 9

Parker v Clarke - sold their house presuming they would inherit the older couples’s