Intention To Create Legal Relations Flashcards
Intention to create legal relation
Once offer and acceptance have taken place, and consideration is established to identify whether the parties intend to form a contract they intend to create legal relations, this intention can be expressed or implied
Intention to create legal relations AO3
P: there is an argument that there shouldn’t be a need to prove legal intent as offer acceptance and consideration should be enough intention to create legal relations are a necessary because it prevents individuals from being legally bound when they did not intend on creating legal relations
DP: this element of ITCRL all was judges to respect the wishes of the parties involved
WDP: avoid frivolous claims with no weight and prevents opening floodgates
Subheadings of intention to create legal relations
Business or domestic agreement
Business agreement
Social and domestic arrangements
Business or domestic agreement
When it is unclear whether the agreement is a domestic or buisness agreement the burden of proof lies with the claimant to prove there was an intention to create legal relations
Business agreement
Buisness agreements are presumed to be legally binding however these presumptions can be rebutted
Sometimes contracts can be binding in honour only meaning they are not contractually enforceable
Binding in honour only
Sometimes contracts can be binding in honour only meaning they are not contractually enforceable
Binding in honour only case
Jones v vernon pools
Held: as c signed the coupon meant there was no contractual obligation for the pools company to honour the agreement
Binding in honour only AO3
One reason for reaching this decision was on the basis that the pools company were protected from fraudulent claims in todays technical age companies can be protected from fraudulent claims so perhaps the decision is outdated the words bing in honour only are not common language used today some people who read that state will not understand it
Free gift / prize
When a free gift / prize is offered in order to promote a buisness this can be legally binding
When prizes are offered in competitions companies intend to create legal relations
Free gift / prize case
McGowan v radio Buxton
Held: there was an intent to create legal relations c had to be compensated
Free gift / prize AO3
It is fair that prizes and free gifts are binding / have intention to be legally binding be cause the claimant has fulfilled their side of the bargain to promote the buisness the defendants also fulfill their side if these agreements were not legally binding one party would suffer a detriment and other benefits
DP: this upholds public policy because the courts are protecting the claimant’s interests granting them justice
WDP: furthermore making these decisions binding means there is no loophole in the law the defendant cannot escape liability also it is fair for the courts to impose liability or defendants that are buisness are most probably in a better financial position to enable the, to compensate
Letter of comfort
Al letter of comfort is usually binding
It is a document written by a trusted reliable source which provides assurance that an obligation will be fulfilled
Letter of comfort case
Kleinsworth benson ltd v Malaysian mining cooperation (mcc)
Held: the letter wasn’t legally binding mcc weren’t obliged to do anything
Letter of comfort AO3
P: it’s the responsibility of the court to identify whether the agreement is binding or not this is an example of judicial creativity as the judges will decide on a case by case basis whether the agreement is legally binding or not
DP: this also conflicts it’s the separation of powers as judges are going outside their constitutional role
WDP: Howe fairer decisions will be made as each case will be dealt with individually allowing the claimants access to justice
Social and domestic arrangements
These agreements are presumed to be legally binding in ding though this can be rebutted
Social and domestic arrangements AO3
The courts have created the two presumptions which help to make decisions as they have criteria to follow this is advantageous for lawyers and clients as lawyers are able to advise clients on the likely outcome of cases
DP: this upholds the rule of law as the law is certain
WDP: furthermore this will reduce the financial burden on the claimants as they will not meet to pay unnecessary costs for financial representation
Spouses cases
Balfour and Balfour
Held: no intention to intention to create legal relations as they were married with the agreement was made
Meritt v meritt
Held:there was an intention to create legal relations as the couple had separated when the agreement was made
No intention to create legal relation spouses case
Balfour v Balfour
Intention to create legal relation spouses case
Meritt v merittt
Spouses AO3
P: The outcomes are not different enough as the only difference is whether the agreement was made during the marriage the decision in Balfour v Balfour does not effect Modern thinking a it isn’t an old case today when making agreements in a marriage the parties may intend on becoming legally bound
DP: this is also an example of judicial creativity as judges are making decisions on a case by case basis this conflicts with the separation of powers
WDP: however the courts are respecting the wishes of the parties in Meritt v Meritt as the parties and divorced they did not intend to be legally bound as the relationship had broken down
Case for prenuptial agreements
Radmacher v grantino
Radmacher v garnatino
The case of Radmacher v garnatino made prenuptial agreements legally binding as long as both parties intended to be legally bound when the agreement was made
Family agreements
When families make agreements that appear to be be business arangment’s in count has to asses whether the matter is a domestic one or one with legal intent.
Family agreements case
Jones v padvatton
Held: neither mother or daughter had intended to create legal relations
Family agreements AO3
P: the decision can be criticised as the. Are divided the coa judges probing that cases like these can lead to inconsistent outcomes the judges within the court of appeal are highly experienced experts therefore if they are split in their decision about whether the agreement is business social lay people will definitely not be able to to differentiate
DP: this means the law is confusing to lay people and therefore inaccessible
WDP: as courts of appeal judges have deferring opinions on when there is or isn’t an intention to be legally bound this could lead to the public loosing faith in the justice system
VWDP: this could deter them from proposing a claim
Lottery syndicates
If money has been paid it is more likely to be a business agreements than a social one
with competitions and lottery syndicates even when they are agreed between family or friends this is usually a buisness agreements
Lottery syndicates case
Simpkins v pays
Held: she was bound to split the money as this wasn’t a social arrangement
Case for social chatter
Wilson and Burnett
should be some record of agreement
Wilson and Burnett
There should be some record of agreeemet or it may be deemed social chatter
Financial security at risk
If parties put their own financial security at risk then they must have intended the agreement to be legally binding
Financial security at risk case
Parker v Clarke
Held: this was legally binding the young couple had given up on their security and they were entitled to damages
Financial security at risk AO3
P: this decision is morally correct as if the courts had decided there was not ITCLR the young couple would be left at a significant financial loss and possibly homeless
DP: this decision uphold public policy as the interest and the right of the young people are being protected
WDP: however the courts are not respecting the wishes of the old couple a contract is being enforced upon them when they had no intention of being legally bound
social and domestic arrangements subheadings
Spouses
Family agreements
Lottery syndicates
Financial security at risk
Buisness agreements subheading
Free gifts prize
Letter of comfort
Conclusion
The rules on on domestic intention need ram as they are outdated
Rest in book………
