Intention to create legal relations (formation) - cases

Question 1

Edwards v Skyways

Answer 1

(Acceptance of redundancy)
- Held that it was meant to be legally binding as the words ‘ex gratia’ were not strong enough to rebut the presumption.

Question 2

Jones v Vernon’s Pools

Answer 2

(betting agreement)
- words ‘binding in honour only’ rebutted this presumption so not intended to be legally binding. No contract.

Question 3

Esso Petroleum v Commissioners of Customs and Excise

Answer 3

(World cup coin)
- Agreement was intended to be legally binding and there was no evidence to rebut - contract existed.

Question 4

McGowan v Radio Buxton

Answer 4

(Renault Clio)
- No clear wording to rebut the presumption so contracted existed.

Question 5

Balfour v Balfour

Answer 5

(£30 to look after house)
- No contract existed as it was purely domestic.

Question 6

Merritt v Merritt

Answer 6

(Divorced - written agreement for monthly payment)
- Contract was put into writing so intended for it to be legally binding, no evidence to rebut the presumption.

Question 7

Wilson v Burnett

Answer 7

(Oval agreement on bingo)
- Social agreement and had no evidence to to rebut presumption, so no contract.

Question 8

Simpkins v Pays

Answer 8

(Weekly magazine competition)
- Contract was there as they saw it as a joint enterprise due to sharing entry money. Intended to be legally binding.