Intention to create legal relations

Question 1

Is there a intention to create legal relations in commercial contract?

Answer 1

Yes, there is a strong presumption of intention to create legal relations which can be rebutted if ‘binding in honour only’

Question 2

Is there a intention to create legal relations in domestic agreements?

Answer 2

The law presumes that domestic agreements are not intended to be legally binding unless the facts show otherwise.

Question 3

How can the presumption of no intention to create legal relations be rebutted in domestic agreements?

Answer 3

The presumption can be rebutted if the facts demonstrate that the parties intended the agreement to be legally binding.

Question 4

Q: What is an example of a domestic agreement that is not intended to be legally binding?

Answer 4

An agreement between a parent and child about what the child must do to receive a weekly financial allowance of £10 is typically not intended to be legally binding due to the close relationship and nominal sum involved.

Question 5

What if family members expressly agree that their agreement will be legally binding?

Answer 5

If family members, such as a brother and sister, expressly agree that their agreement will be legally binding, the presumption of no intention to create legal relations is rebutted