Intention To Create Legal Relations

Question 1

Presumptions as to if it was intended to be legally binding?

Answer 1

Domestic- not intended

Commercial- intended

Generally believed

Question 2

Domestic

Jones v Padavatton

Answer 2

No ITCLR as the mother and daughter were on good terms when agreement made

Daughters claim of a contractual title to house dismissed

Question 3

Domestic

Hadley and Kemp

Answer 3

K wrote all the songs but shared income with rest of the band.
Discontinued payments and they sued.

‘I am not persuaded that the band had established that Ks decision to share his publishing income… was made with an intention to crest legal relations.”

Question 4

Domestic

Merritt v Merritt

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Answer 4

M move in with another woman. Agreement made that mr would pay Mrs a monthly £40 and eventually give her the house if she kept up with mortgage payments. He refused to give her the house after the mortgage was paid.

Held that the nature of contract (they were already divorced when decided) allowed courts to assume it more than a domestic arrangement.

Question 5

Commercial

ESSO

Answer 5

Advertisement that the coins were ‘going free’ and the minimal value of the coins indicated no ITCLR

Question 6

Language used to rebut presumption of ITCLR (3)

Answer 6

Subject to contract

Letter of comfort

Honourable pledge cause

Question 7

RTS v Molkerei

Answer 7

Terms were not ‘subject to contract’