Intention to Create Legal Relations

Question 1

intention to create legal relations

Answer 1

parties to a contract must intend the agreement to be legally binding

law allows presumptions to be rebutted using evidence

Question 2

ITCLR in commercial agreements

Answer 2

ITCLR is implied/presumed (McGowan v Radio Buxton)

can be rebutted (Jones v Vernon Pools)

sale of a house subject to contract: must be evidenced in writing to be legally valid (Law of Property Act 1925)

Question 3

ITCLR in social/domestic agreements

Answer 3

not presumed (Balfour v Balfour)

exceptions (more formal situations):

(1) agreed menus made linked to marriage break up (Merritt v Merritt)

(2) agreements made between parents/children (must be formalised eg. written/witnessed document)

(3) agreements based on social arrangements (eg to share winnings in lottery syndicate in writing/signed) (Simpkins v Pays)