Intention To Create Legal Relations Flashcards
What is the presumption in business and commercial contracts?
That agreements made will be legally binding
Edward’s v skyways- had to make a payment because it was a business setting
What is meant by clear words?
Where there are clear words in the contract this will rebut the presumption
Honour clause- the honour pledge suggested that thus was not intended to be a legal agreement
Rose v frank co
What is a mere puff?
Where some offers may include a competition or reward for entering an agreement.
McGowan v radio Buxton- intention to create legally binding agreement as there was a chance to win a reward
What are letters of comfort.
Where a parent company provides asssurnace to a lender
What is the presumption in social and domestic contracts?
Agreements made in social and domestic settings will not be legally binding
Balfour v Balfour- agreement of paying money was social which means it was not legally binding
What is the rule with separated parties?
Where a couple have separated and an agreement has been made after the separation this will rebut the presumption
Merit v Merritt- couple were separated where they made the agreement- they had intention to be legally bounding
What is the rule with parents and children?
Where an agreement within a parental relationship there will not be intention to create legal relations
Jones v padavatton
What is the rule with unclear relationships?
Where the relationship is unclear the burden is on the courts to prove an intention.
Bluey v Ashley- agreement was made in a pub which meant it was not legally binding
