Intention to create legal relations

Question 1

What is intention to create legal relations?

Answer 1

Parties must have intended to be a legally binding one- Law will enforce the agreement

Question 2

What are the two types of agreements?

Answer 2

Business and commercial

Social and domestic

Question 3

What is the rule under business?

Answer 3

Start by assuming there is an intention to create a contract.

However this is A REBUTABLE PRESUMPTION- meaning that if you can prove it did not intend to be a contract- no intention

Question 4

Rule under social and domestic

Answer 4

Between friends and family- start by assuming there is NO CONTRACT however this is rebutable - if u can prove that you did intend to create a contract the court will find intention

Question 5

What if u are not 100% sure whether it id a social or business arrangement, case?

Answer 5

Sadler V reynolds- the court held that the claimant has a burden of proving that both parties intended the agreement to be legally binding

Question 6

Business and commercial agreements, case?

Answer 6

Jones V vernon pools- Clause in the contract which read that this agreement was binding in honour only- no intention

Question 7

Free gifts/ prizes case?

Answer 7

Mcgowan V radio buxton- there was intention to create legal relations C had to be compensated

Question 8

Letter of comfort, case?

Answer 8

NOT LEGALLY BINDING-

Kleinwort Benson LTD v Malaysian mining corporation- not legally binding therefore do not confuse with guarantors

Question 9

Social and domestic arrangements, Case?

Answer 9

Balfour V Balfour -These agreements are not legally binding between families and friends

This can be rebuttable meaning if u can prove it courts can declare the contract to be legally binding

Question 10

EXCEPTIONS

Answer 10

1. Loss of love and affection- MERRITT V MERRITT - husband and wife seperation when reaching the agreement- legal contract

2.Pre-nup agreement- Radmacher V granatino- agreement prior to marriage

3. Family arrangements- Jones V padvatton- if it appears to br a business courts can manage
4. When money is involved such as lottery
   simpkin V pays- business arrangment
5. Financial security at risk agreement is binding- parker V clarke- remortgage your house