Intention to Create Legal Relations

Question 1

Describe ICLR in Business agreements.

Answer 1

Business agreements are usually intended to be legally binding (Edwards v Skyways)
- This can be rebutted if it can be shown there was no intention to create legal relations (Jones v Vernon Pools)
- If a free gift is offered in order to promote a business, it can be legally binding (Esso Petroleum Ltd).

Question 2

Describe ICLR in Domestic/Social agreements.

Answer 2

There is a presumption that these are not legally binding (Balfour v Balfour)
- If an agreement has been made socially and money has changed hands, it is more likely to be a business agreement (Simpkins v Pays)