Intention to Create Legal Relations

Question 1

What is intention to create legal relations

Answer 1

for an enforceable contract the courts must think the contract is of a nature which can be enforced

Question 2

What is the social setting

Answer 2

Family, friends, social etc. relationships. Presumption they are not intended to be legally binding, onus on defendant to prove they were intended to be legally binding

Question 3

Fleming v Beevers

Answer 3

De facto couple agreed to share their half share in the house in their wills if one died. One died not leaving this in their will but it was binding because there was intention to create legal relations through a contractual document (will)

Question 4

Ashton v Pratt

Answer 4

Businessmen promised mistress lots of money for her son. Did not do so and was not binding because the discussion was informal and not specific

Question 5

What is the commercial setting

Answer 5

any business, commercial type contracts have the assumption they are intended to be legally binding

Question 6

Tower v Nicon

Answer 6

Big gaps in the contract would be evidence of an agreement to agree but here, there were none, the parties took steps 18 months after the contract which showed an intention to be bound

Question 7

Deng v Zheng

Answer 7

cultural considerations are relevant to consideration. No formal agreement but internal accounts and documents pointed to shared intention to be bound

Question 8

Factors that point towards an intention to be bound

Answer 8

• Commercial events,
  
  • Large sums of money,
  • In writing
  • Cultural factors suggest binding (could be important for tikanga)
  • Serious consequences
  • Penalties
  • Lawyers