Intention to Create Legal Relations

Question 1

How do we know what the parties intended?

Answer 1

What would a reasonable third party think the intention was by looking at circumstances?

Question 2

What are the 2 types of agreement

Answer 2

Social/domestic (friends/family)
Commercial (business)

Question 3

Social - Law presumes parties did not intent to make a legal contract (very good relationship)

Answer 3

Jones v Padvatton

Question 4

Contributed money to an agreement and we’re not related so was a contract

Answer 4

Simpson v Pays

Question 5

Large risk and finances involved means legal contract

Answer 5

Parker v Clarke

Question 6

Verbal agreement

Answer 6

Balfour v Balfour

Question 7

Written agreement

Answer 7

Merritt v Merritt

Question 8

promotions can be contracts if the company gains commercial benefit

Answer 8

Esso v CCE

Question 9

If written in the contract says that it’s not legally binding then there is no intention

Answer 9

Rose and Frank Co v Compton Bros

Question 10

If written there is no intent, even if one party is an individual and the other is a company

Answer 10

Jones v Vernons Pools

Question 11

Letters of comfort are not contracts

Answer 11

Kleinwort Benson v MMC

Question 12

If words of an agreement are unclear on whether it’s binding or an honourable pledge, court goes in favour of presumption

Answer 12

Edwards v Skyways

Question 13

Where it’s unclear what type of agreement there is, the person who wants it to be commercial has the responsibility of proving that

Answer 13

Sadler v Reynolds