Intention to Create Legal Relations Flashcards
What are the presumptions?
Domestic - no intent to create legal relations
Commercial - intent to create legal relations
Balfour v Balfour
Facts: • C and D had a verbal agreement where the husband would pay £30 to C
• D left the country but C remained on medical grounds
• C sued for money when payments stopped
Judgment: No contract. For D
L.P: • Domestic agreements have no intent to be legally binding - domestic presumption
Edwards v Skyways Ltd
Facts: • C was a pilot who was made redundant
• D offered to pay C a payment which was said to be Ex Gratia to whicjbhe accepted
• D realised it would be too expensive and denied any legal obligation to pay
Judgment: For C
L.P: • Commercial presumption created
• Heavy onus of party alleging no intent
Jones v Padavaton
Facts: • A mother made an agreement with her daughter that if she left her job in America to read for the bar in England she would pay her $200 a month
• Daughter came to England to study
• Agreement was varied and mother provided daughter with a house
• A dispute arose and the mother took possession of the house
Judgment: For mother
L.P: • At time of agreement -> mother daughter relationship meant no intent to create legal relations
Merritt v Merritt
Facts: •Husband and wife built a house in the husbands name with a. Large mortgage
• Agreed to put it in joint names
• Husband left to live with another woman
• Husband agreed to pay £40 a month out of which she would pay outstanding debt
• Wife inspired Husband sign a document making her sole owner until payments were made
Judgment: Wife succeed
L.P: Marriage was coming to an end so Assumption was rebutted
•Context is important
Rose + Frank co v Crompton Bros
Facts: • An English firm had business with an American one
• American firm proposed a new arrangement and drew up a new document that was signed by all parties
• included a term which excluded legal enforceability for breach
• D breached
Judgment: Contract could not be enforced
L.P: • Explicitly stated that there was no intent to create legal relations
• courts are guided by parties intentions
Simpkins v Pays
Facts: • C, D and D’s granddaughter had an arrangement where C submitted a coupon for a newspaper completion each week
• Coupon contained a forecast made by the three
• Forecast made by granddaughter was successful
• c sought to obtain a third as they agreed to “go shares”
Judgment: C succeeded
L.P: • Despite presumption, context clearly showed an intent to create legal relations
