Intention to Create Legal Relations Flashcards
What are common kinds of agreements that are typically intended to be non-enforceable/not contracts?
Familial or social agreements
Balfour v Balfour
British case
Husband working in Sri Lanka while wife is stuck in England. Husband does not send support payments as previously agreed.
Case dismissed because consideration was “love and affection.” Court also noted while some agreements between spouses can be legally binding, these types of agreements typically occur when the relationship is deteriorating. Since the couple was still on good terms when the support agreement was made, the Court saw it as unlikely to be a legally binding agreement.
Jones v. Padavatton
British case
Mother in Trinidad pays for daughter to go to law school in England. Mother also buys house for daugher to live in and collect rent from room boarding. Daughter keeps failing to pass law exams and refuses to pass collected rent on to mother.
Court finds the agreement between family members non-binding because they were on good terms when they made the agreement.
Dissenting opinion thought there was intent to create legal relations BUT daughter wasn’t holding up on her end of the bargain because she had not passed her law exams.
Haggar v. De Placido
British case
Court found family members did intend to create legal relations when the son formed a contract for his mother and brother to take care of him following his being severely injured. Person responsible for accident argued they should not have to pay legal costs because contract between family members is invalid.
Different than typical family contract cases in that son sued a non-related person - the party who injured him - and not another family member.
Coleman v. Mullen
Irish law
Neighbour spends 20 hours a week helping take care of an elderly neighbor. When the elderly woman passes, the neighbour contacts her estate and asks for payment for her services.
Court found there was no intent to create legal relations, in large part because neighbor said she would have taken care of the elderly lady anyway, even if she knew there was no hope of being paid for her services.
Court’s opinion also noted finding this situation to have created legal relations could have a chilling effect on neighbours helping each other.
Kleinwort Benson v. Malaysia Mining Corp Bhd
British case
Letters of comfort are generally not contracts.
Husband working in Sri Lanka while wife is stuck in England. Husband does not send support payments as previously agreed.
Case dismissed because consideration was “love and affection.” Court also noted while some agreements between spouses can be legally binding, these types of agreements typically occur when the relationship is deteriorating. Since the couple was still on good terms when the support agreement was made, the Court saw it as unlikely to be a legally binding agreement.
Balfour v Balfour
British case
Mother in Trinidad pays for daughter to go to law school in England. Mother also buys house for daugher to live in and collect rent from room boarding. Daughter keeps failing to pass law exams and refuses to pass collected rent on to mother.
Court finds the agreement between family members non-binding because they were on good terms when they made the agreement.
Dissenting opinion thought there was intent to create legal relations BUT daughter wasn’t holding up on her end of the bargain because she had not passed her law exams.
Jones v. Padavatton
British case
Court found family members did intend to create legal relations when the son formed a contract for his mother and brother to take care of him following his being severely injured. Person responsible for accident argued they should not have to pay legal costs because contract between family members is invalid.
Different than typical family contract cases in that son sued a non-related person - the party who injured him - and not another family member.
Haggar v. De Placido
British case
Neighbour spends 20 hours a week helping take care of an elderly neighbor. When the elderly woman passes, the neighbour contacts her estate and asks for payment for her services.
Court found there was no intent to create legal relations, in large part because neighbor said she would have taken care of the elderly lady anyway, even if she knew there was no hope of being paid for her services.
Court’s opinion also noted finding this situation to have created legal relations could have a chilling effect on neighbours helping each other.
Coleman v. Mullen
Irish case
Letters of comfort are generally not contracts.
Kleinwort Benson v. Malaysia Mining Corp Bhd
British case
What is an honourable pledge clause?
An honourable pledge clause is an express exclusion of legal enforceability, indicating the parties are not entering into a contract but instead are merely ‘honourably pledging” between themselves to do something. (see Rose and Frank v Crompton)
