Intention to Create Legal Relations Flashcards
Where no intention to be bound can be attributed to the parties…
there is no contract
What does intention to create legal relations mean?
an intention to enter into an agreement with legal ramifications – a contract.
What type of test is it?
intention of parties = determined more by what the actions of the parties in the particular circumstances suggests
expressed or presumed
What’s the assumption for a commercial agreement?
presumed that there is an intention to create legal relations.
The next question is whether the presumption has been rebutted.
What’s the assumption for a social/ domestic agreement?
presumed that there is not an intention to create legal relations.
The next question is whether the presumption has been rebutted.
Are commercial agreements limited to agreements between businesses?
No - includes agreements between individuals and businesses and agreements between individuals, eg if you bought a car through an online advert.
Who is the onus on when they claim that legal relations were not intended when the agreement was entered?
onus is on that party to rebut the presumption - burden of doing so is heavy
Why was the advert in Carlill v Carbolic held to not be a ‘spin’ or a ‘mere puff’?
Co had deposited £1,000 in a named bank = demonstration of its intention to be bound + would be understood by a reasonable person to have that effect.
How does this work with a statute provision?
It may may stipulate that no intention to create legal relations can be inferred unless there is an express provision to the contrary.
What type of inference can be made from the expression ‘subject to contract’?
parties do not intend to be bound until the formal execution of a contract.
How can the general presumption to social agreements be rebutted?
By examining the circumstances of each case + language used by the parties.
What type of agreement have courts have shown a willingness to rebut the usual presumption?
agreements made between spouses who were in the process of separating or are separated when the agreement was reached
