Intention to create legal relations Flashcards
True or false? The rebuttable presumption in the social and domestic context is that there is an intention to create legal relations
False
True or false? The rebuttable presumption in the commercial context is that there is no intention to create legal relations.
False
What is the effect of uncertainty on the enforceability of a contract?
Void
What does ‘capacity’ mean in respect of a party to a contract?
Mental capacity or minor
What is a ‘minor’?
Under 18
What are the 4 factors to rebut the presumption that in the social and domestic context is that there is no intention to create legal relations?
- Certainty of Agreement
- Parties are not on friendly terms when agreement is made
- Agreement is serious
- Party has relied on the agreement to their detriment
What are the 2 factors to rebut the presumption that in the commercial context is that there is an intention to create legal relations?
- Clear words that the agreement shall not have legal effect
- Uncertainty in the agreement terms
A man is about to marry a very wealthy woman. The man and the woman sign a prenuptial agreement that provides that the woman’s assets shall remain the woman’s assets after the man and the woman get married. The man and the woman get married, but a year later they have separated and file for divorce.
Which of the following best describes the man’s legal position towards the woman’s assets under the prenuptial agreement?
A. The man will be able to claim the assets covered by the prenuptual agreement. The prenuptual agreement is not legally binding because it was made in the social and domestic context.
B. The man will be able to claim the assets covered by the prenuptual agreement. The prenuptual agreement is not legally binding because it was made in the social and domestic context, and the fact that the woman and man were friendly at the time they made the agreement means that the presumption of no intention to create legal relations cannot be rebutted.
C. The man will not be able claim the woman’s assets covered by the prenuptual agreement because prenuptual agreements are sufficiently serious to rebut the presumption of no intention to create legal relations.
D. The man will be able to claim the woman’s assets because the subject matter of the prenuptual agreement is not sufficiently serious to rebut the presumption of no intention to create legal relations.
E. The man will not be able to claim the woman’s assets because the rebuttable presumption in the social and domestic context only applies to a man and a woman who are married, and not to a man and a woman who are planning to get married.
C. The man will not be able claim the woman’s assets covered by the prenuptual agreement because prenuptual agreements are sufficiently serious to rebut the presumption of no intention to create legal relations.
A mother is on friendly terms with her daughter and wants to motivate her to study law, so she promises that if her daughter gives up her job in New York and studies law in London she will pay her fees, give her an allowance and provide a house for her to live in. The daughter gives up her job in New York and moves to London and starts studying law. The mother pays her daughter’s law school fees, buys a house for her daughter to live in, and pays her an allowance. After five years, the daughter is still studying and the mother seeks to reclaim possession of the house.
Which one of the following statements best describes the legal position of the parties?
A. The mother is bound by her agreement to let the daughter live in the house for as long as it takes the daughter to complete her legal studies.
B. The mother is not bound by her agreement to let the daughter live in the house.
C. The mother is bound by her agreement to let her daughter live in the house for a reasonable period of time.
D. The agreement between mother and daughter is voidable due to lack of certainty.
E. The mother is not bound by her agreement to let the daughter live in the house because she was on friendly terms with her daughter when they made the agreement. An agreement made between a mother and daughter on friendly terms will never rebut the presumption in the social and domestic context.
B. The mother is not bound by her agreement to let the daughter live in the house.
An insurance company advertises a new insurance product in the offices of a large network of holiday companies. The advertisement states that any person booking a holiday with any member of the network of holiday companies will be covered for all claims by holiday insurance. A man sees this notice and books a holiday
through a member of the network of holiday companies. The man’s holiday is cancelled due to a national pandemic making all travel impossible.
Which of the following best describes the man’s rights against the insurance company?
A. The man cannot claim against the insurance company because advertisements are an exception to rebuttable presumption in the commercial context and there is never an intention to create legal relations.
B. The man can claim against the insurance company because the advertisement of this kind is a promise of protection to anyone who books a holiday with a member of the network.
C. The man cannot claim against the insurance company because he booked his holiday with the holiday company, rather than with the insurance company.
D. The man can claim against the insurance company because the rebuttable presumption of the intention to create legal relations is practically impossible to rebut.
E. The man cannot claim against the insurance company as this is clearly a gimmick to drum up business and is not intended to create legal relations.
B. The man can claim against the insurance company because the advertisement of this kind is a promise of protection to anyone who books a holiday with a member of the network.
A businesswoman agrees to sell her private zoo to a businessman. The price is agreed and the sale agreement is drawn up. But just before the parties sign the agreement, the businesswoman decides that she would like to be able to visit the animals in the zoo from time to time, so she asks if she can change the sale agreement.
The businessman refuses this as he does not want to start amending an agreement that is in agreed form. As a result, the businessman and the businesswoman sign a separate document that provides for the businesswoman to be able to visit the animals in the zoo ‘at times and subject to conditions to be agreed’ by the
businessman and the businesswoman.
Which of the following best describes the rights acquired by the woman under the separate document?
A. Given the lack of certainty in the letter, the woman has only the right to visit the animals in the zoo at reasonable times on weekdays.
B. The businesswoman has acquired the right to force the businessman to set out a schedule of visiting times and conditions for her.
C. The separate letter needs to be considered as a condition to the sale of the zoo so that if times and conditions for the businesswoman to visit are not agreed, then the businesswoman can elect to set the whole transaction aside and sell the zoo to another party.
D. The businesswoman has acquired no rights under the separate document at all.
D. The businesswoman has acquired no rights under the separate document at all.
NOTE: Agreements to agree are not enforceable
A 16-year-old schoolgirl goes on a shopping trip to a jewellery shop and buys a diamond tiara and a pearl necklace. The schoolgirl explains to the shop owner that she has left her credit cards at home but she promises to transfer funds to pay for the tiara and the necklace later that day. The schoolgirl fails to transfer the promised
funds because she does not have them.
Which of the following best describes the position of the shop owner?
A. The shop owner can force the schoolgirl to pay a reasonable amount for the tiara and necklace on the grounds that they are necessaries.
B. The shop owner has no recourse against the schoolgirl because she is a minor.
C. The shop owner can petition the court to order the schoolgirl to return the tiara and necklace to him on the basis that it would be just and equitable to do so.
D. The shop owner can reclaim the goods from the schoolgirl on the basis that contracts with minors are void.
E. The shop owner is entitled to the return of the goods because the evidence indicates that the schoolgirl was acting in bad faith.
C. The shop owner can petition the court to order the schoolgirl to return the tiara and necklace to him on the basis that it would be just and equitable to do so.
