Intention To Create Legal Relations

Question 1

Balfour v Balfour (1919)

Answer 1

H about to go abroad promised to pay sum per month to W. W consideration not seek further maintenance. H not pay. CoA held H not bound by contract as in domestic situations no intention to create legal relations.

Question 2

Rose & Frank Co v J R Crompton & Bros Ltd (1925)

Answer 2

Contract between 2 businesses confirmed an honourable pledge clause stating this arrangement is not entered into as a formal or legal arrangement rebutted the presumption.

Question 3

Bowerman v Association of British Travel Agents Ltd (1996)

Answer 3

Stress need to expressly exclude any intention to be legally bound if this is the desired result

Question 4

Edward v Skyways Ltd (1964)

Answer 4

A business seeking to disapply a commercial agreement will have to prove that this was the parties intentions

Question 5

Merritt v Merritt (1970)

Answer 5

Rebut presumption lack of intention - dealings at arms length

Question 6

Parker v Clarke (1960)

Answer 6

Putting financial security at risk

Question 7

Simpkins v Pays (1955)

Answer 7

If there is sufficient mutuality in the arrangements between the parties

Question 8

Williams v Burnett (2007)

Answer 8

Some form of formal agreement would be required in order to rebut the presumption

Question 9

Kleinwort Benson Ltd v Malaysian Mining Corp (1989)

Answer 9

Commercial letters of comfort or letters of intent are not normal binding