Intention to create legal relations in business arrangements- cards checked

Question 1

When is an intention to create legal relations generally presumed?

Answer 1

-in business arrangements

Question 2

How can a presumption of ITCLR be rebutted in business arrangements?

Answer 2

-an express statement in the agreement to restrict this element
-e.g. a gentlemen’s agreement which is binding in honour only.

Question 3

Who is the burden of proof on to prove a presumption has been rebutted in business arrangements?

Answer 3

-on the person seeking to establish that there is no legal intention, that is, that the presumption has been rebutted. (so we want to prove that the presumption has been rebutted

Question 4

How can intention to create legal relations in a house sale situation be interpreted?

Answer 4

-a sale of a house is ‘subject to contract’ (intention to proceed).
-terms of a contract still need to be agreed so up to interpretation whether there has been a contract.

Question 5

What is meant by a comfort letter and what does this usually mean?

Answer 5

-a written assurance that contractual obligations should be fulfilled
-not legally binding.

Question 6

Jones V Vernon Pools?

Answer 6

-Agreement based on honour is not legally binding.
-coupon

Question 7

Edwards V Skyways?

Answer 7

-‘ex-gratia payment legally binding’

Question 8

Rose & Frank Co V Compton bros?

Answer 8

-honourable pledge rebutted the presumption
-ONLY A HONOURABLE PLEDGE

Question 9

Esso V CCE?

Answer 9

-trying to attract new business- intention to be bound and tax payable.

Question 10

McGowan V Radio Buxton

Answer 10

-given mini car instead of full sized after radio competition
-there was an ITCLR.

Question 11

Kleinwort V MMC

Answer 11

-a comfort letter is not intended to be legally binding.