Intention to Create Legal Relations Flashcards

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1
Q

What is an Intention to Create Legal Relations

A

An agreement will only be a contract if both parties intend to create legal relations i.e. both parties intend to sue each other if either party breaks the agreement.

E.g. JONES V PADAVATTON 1969
E.g. BALFOUR v BALFOUR 1919

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2
Q

What are Business Deals

A

○ an intention to create a legally binding agreement is automatically presumed
E.g. JONES V PADAVATTON 1969

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3
Q

What are Domestic and Social agreements

A

○ it is presumed that no such intention exists

○ (if the facts show there is intent to be a legal engagement, court will take into account)

• BUT

○ Both of these presumptions can be rebutted if there is evidence to the contrary

E.g. BALFOUR v BALFOUR 1919

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4
Q

Rebutting the presumption on intention to create legal relations

A

§ To decide if the presumption has been rebutted the court will take account:

  • the nature of the agreement and
  • all the circumstances of the case,

so it is largely a factual matter.

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5
Q

What are Letters of Comfort?

A
  • common practice in modern business for businesses
  • letters often include promises which are extra to the contractual commitments and their legal status is not always clear- assumed moral responsibility but not a legal liability

E.g. Kleinwort Benson Ltd v Malaysia Mining Corporation 1988

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