Intention to Create Legal Relations Flashcards
Edwards v Skyways
Presumption in Business and Commercial Contracts
Skyways ex-gratia payment was still an intention to legal relations and therefore were required to pay.
Rose and Frank v Crompton
Clear Words
The presumption of enforceability was rebutted due to the clear ‘honour clause’ in the agreement.
Jones v Vernon Pools
Clear Words
There was no enforceable contract, the clear honour clause and language rebutted the presumption of legal intent
Esso Petroleum v Customs and Excise
Mere Puffs
There was an intention to be legally bound as the coins were offered in a commercial context and gave a financial advantage to Esso
McGowan v Radio Buxton
Mere Puffs
There was an intention to create legal relations, the purpose was to create a commercial advantage which led to an increase in listeners. They had to provide the C with a car.
Kleinwort Benson v Malaysia Mining Corp
Letters of Comfort
The letter was an honest representation of the business, there was no language which would suggest there was an intention to be legally bound.
Balfour v Balfour
Presumption in Social and Domestic Contracts
The agreement was purely social as it was made within the matrimonial home and therefore not enforceable. Lord Atkin: ‘There is no place for love and affection in these cold courts’
Merritt v Merritt
Social and Domestic Rebuttal
The couple were separated and had a signed agreement that the husband would pay towards the house they jointly owned. There was an intention to create a legally binding agreement
Jones v Padavatton
Parents and Children
The agreement between the mother and daughter was purely social and domestic and was not legally binding due to the closeness of the relationship and the context of the agreement.
Parker v Clarke
Financial Reliance
The young couple were financially reliant on the aunt and uncle after selling their own house. They relied on their promises and financial assurances which rebutted the presumption.
Simpkins v Pays
Lottery Winnings
Grandmother, granddaughter and lodger made a lottery syndicate, the unrelated third party was evidence of the intention to create legal relations.
Wilson v Burnett
Prize Winnings
There was an oral agreement to share the prize but there was no financial contribution so there was not enough to rebut the contract.
Snelling v Snelling
Not dealing in a domestic setting
Where a party is clearly not making an agreement in a domestic setting, this will rebut the presumption. Although the parties were brothers, agreements were made in a domestic setting.
Sadler v Reynolds
Unclear Relationships
The parties were both friends who agreed to ghost-write an autobiography for the other. There was an oral agreement between the parties, but the burden was on the party who relied on the contract to prove there was an intention.
Blue v Ashley
Unclear Relationships
Parties can use the language of offer without expressing genuine willingness to be bound. No reasonable person at the pub would have thought the offer was intended to create a contract.
