Intention to create legal relations Flashcards
agreement rule
even if there is an agreement between the 2 parties there is no contract if there is no intention to create legal relations
what are the 2 types of agreement
- social/ domestic
- commercial
what is presumed about social/ domestic agreements
that there was no intention to create a legal contract
Balfour V Balfour and Merritt V Merritt
the court will consider how the agreement was made
can the presumption that social agreements have no intent be rebutted and how
yes, one party can bring evidence to show they did intend to create a contract and the court can enforce the agreement
relationship and case
the court will consider the relationship between the parties
Jones V Padvatton
financial involvement and cases (2)
the court will consider any financial involvement
Simpkin V Pays- not related
Parker V Clarke- family
what is presumed about commercial agreements
the parties do intend to create a legal relationship and contract as normally goods, money or services are changing hands
Jones V Vernon’s pools
business to business rebutting evidence, clear evidence will show there was no intention to create legal relations
Kleinwort Benson V MMC
business to business
actions proved they didn’t intend to be legally bound
Edwards V Skyways
if it is unclear on whether its binding or not the court will go in favour of presumption
commercial benefit and case
if a party is getting commercial benefits from being in the contract it supports the idea that the contract is legally binding
Rose and Frank CO V Crompton Bros
rebutting evidence business to business- unsuccessful
Sadler V Reynolds
where it is unclear whether the agreement is domestic or commercial the person who wants it to be commercial and binding has a responsibility of proving that
