Intention to Create Legal Relations

Question 1

What is an intention to create legal relations?

Answer 1

Both parties must have intended for the contract to be legally binding

Question 2

What was held in Jones v Vernon’s Pools?

Answer 2

The agreement was based on honour and so there was no intention to create legal relations

Question 3

What was held in Edwards v Skyways Ltd?

Answer 3

The burden of proof for an intention to create legal relations in business agreements is on the person that the presumption has been rebutted

Question 4

What was held in Balfour v Balfour?

Answer 4

There burden of proof was on the wife to establish an intention to create legal relations

Question 5

What was held in Merritt v Merritt?

Answer 5

Lord Denning distinguished Merritt from Balfour as it is different when not living in amity but are separated or are about to separate

Question 6

What was held in Jones v Padavatton?

Answer 6

There was no intention to create legal relations as it is one of family arrangements that depends on good faith and are not intended to be binding

Question 7

What was held in Simpkins v Pays?

Answer 7

The action was successful, even though it was a social agreement. There was a mutuality in the agreement between parties

Question 8

What was held in Sadler v Reynolds?

Answer 8

The agreement fell ‘somewhere between an obviously commercial transaction and a social exchange’