Intention to create legal relations Flashcards
complete ITCLR
Balfour v Balfour
Husband and wife agreed that the husband would send $30 to the wife each month - held an domestic agreement which has no legal intention
Merritt V Merritt
The marriage was breaking up therefore there was a rebuttable presumption that there was no legal intention
Jones V Padavatton
Domestic agreements between parent and child - there is a presumption that these agreements have no legal intention
Webb V Webb
Father went through the legal process to change the name of the flat to his sons name, but was seen as having legal intention
Jullian V Furby
court showed a willingness to compromise and agreed that there was a legal intention to pay for the materials used but not for the labour provided as it was seen as a domestic agreement
Simpkin v Pays
social agreements - Gran and granddaughter made a deal with the lodger to share the winnings and it was held as having legal intention
Parker V Clarke
Social agreement that has financial security at risk - seen as having legal intention
Peck v Lateu
Legally binding as the two ladies had agreed to share any winnings from bingo and there was a clear intention to be bound by the agreement - bingo/lottery cases
Wilson v Burnett
Not legally binding as Burnett’s evidence wasn’t satisfiable enough that there was a legal intention to share their winnings - bingo/lottery cases
Coward v Motor Insurances’ Bureau
The court ruled in favour of MIB. The judge found that neither party intended to be legally binding. Mr Coward wasn’t a passenger who Mr Cole was under a duty to ensure and the MIB were not under any obligation to satisfy the judgement
Albert v MIB
The court held in favour of the claimant. The obligation arose if the vehicle systemically carried passengers for reward for reasons beyond more social kindness. There was no need for binding contracts so long as the arrangement amounted to business activity
McGowan v Radio Buxton
McGowan was tricked into thinking she has won a real car - was compensated for the humiliation and upset she faced
Jones V Vernons Pools
Exceptions of the commercial presumption - contract stated that it was ‘binding in honour only’ no ITCLR due to the honour clause
Weeks V Tybald
Mere puffs
The objective test used in the ITCLR comes from which case?
Carlill v Carbolic Smoke Ball
What is the reason for the ITCLR rule?
It would not be sensible for the courts to be filled with actions no all of the broken promises that are ever made We simply do not have enough courts and judges.
The courts have developed two key guidelines for determining whether or not an ITCLR exists that would make the agreement enforceable. What are the two rebuttable presumptions?
-In the case of an agreement that is of a social or domestic nature it’s presumed that there is no ITCLR
-In the case of commercial or business agreements it is presumed that there is an intention to create legal relations and the agreement is legally enforceable
What does ‘rebuttable’ mean?
Able to oppose by contrary proof/evidence - ie. you can prove that to the reasonable man the party did intend to be bound or did not
What does ‘presumption’ mean?
An idea that is taken to be true/fact (unlike an assumption which is where you suppose something without any proof)
What is a domestic agreement? and what is the starting point in these situations for courts?
Agreements made between family members and the court particularly dislike these types of cases being brought to court. Courts will have the presumption that there was no ITCLR
What are the two cases which show domestic agreements between husband and wife, and how they are looked at by courts when deciding ITCLR?
Balfour v Balfour- no ITCLR as they were in a domestic relationship when the agreement was made
Merritt v Merritt - ITCLR as the marriage had fallen apart before the creation of the agreement
What is the presumption of a domestic agreement between a parent and child? Give a case example:
Agreements of a domestic nature between parents and children are also presumed not to be intended to be binding, though the presumption can be rebutted: Jones v Padvatton
What is the presumption of social agreements between other family members and friends? Give a case example:
The presumption that an agreement isn’t intended to be legally binding is also applied to social relationships, these are usually between other family members and friends: Simpkin v Pays
What is a social agreement?
Social agreements are usually made between friends - people unrelated or family members not considered under the domestic agreements. There is a rebuttable presumption that there is no ITCLR
What is the presumption of a social/domestic agreement when financial security is put at risk ie. there is a reliance? Give a case example:
If parties put their financial security at risk for an agreement ie. have acted in reliance on the promise then this alone is likely to rebut the presumption and ITCLR will be found: Parker v Clarke
What is the presumption in Lottery/bingo cases? Give a case example:
When friends decide to share winning, such agreements are viewed in the first instance to be a social agreement by the courts for which there is a rebuttable presumption that the parties do not intend to create legal relations:
-Peck v Lateu: ITCLR
-Wilson v Burnett: no ITCLR
In commercial agreements what is the presumption? Give a case example:
There is a strong rebuttable presumption that the parties do intend such agreements to be legally binding: Esso v Commissioners of Customs and Excise
What do the courts aim to do in commercial agreements? Give a case example:
protect the individual citizen from larger businesses: McGowan v Radio Buxton
What are the exceptions to the commercial presumption? Give an example and a case:
Where the words of a contract, or an offer, suggest that legal relations weren’t intended ‘in honour only agreement’ :Jones v Vernons Pools
What is ‘mere puffs’ as an exception to the commercial presumption? Give a case:
refers to exaggerated or promotional statements that are not intended to be taken literally or as legally binding promises. These statements are often found in advertising and marketing, where businesses make grandiose claims to attract customers: Weeks v Tybald
What are contracts that are ‘subject to contract’? Give a case:
agreements where the parties have indicated that they do not intend to be legally bound until a formal contract is signed. This phrase is often used during negotiations to make it clear that any preliminary agreements or discussions are not yet legally binding: Confetti records v Warner Music
