Intention to create legal relations- Paper 3

Question 1

How do you know what the parties intended

Answer 1

What would the reasonable third party think the intention was by looking at the circumstances

Question 2

Two main types on agreements

Answer 2

• Social and domestic agreements
• Commercial agreements

Question 3

Social and domestic agreements

Answer 3

• If an agreement is made in a social or domestic context, the law presumes the parties did intend to create a legal contract
• This presumption can be rebutted if the parties bring evidence that they did intend to create a legal contract

Question 4

Balfour v Balfour

Answer 4

No intention to create legal relations here as they were happily married and only made the contract verbally

Question 5

Merritt v Merritt

Answer 5

Was intent to create legal relations here as they were separated when the contract was made and they wrote it down

Question 6

Jones v paddavatton

Answer 6

There was no intent to create legal relations here as the mother and daughter had a good relationship

Question 7

Simpkin v Pays

Answer 7

There was intent to create legal relations here as other parties had contributed finances towards the winnings it was fair to expect half of the winnings

Question 8

Parker v Clarke

Answer 8

Although the two parties were relatives, there was intent to create legal relations because they risked their financial security

Question 9

Commercial agreements

Answer 9

• The law makes the assumption that the parties do intend to create legal relations
• Businesses should not be able to go back on their word meaning it is more difficult to rebut this presumption

Question 10

Esso v CCE

Answer 10

As a commercial benefit was gained from the scheme the promotion was a contract

Question 11

Rose and Frank v Crompton Bros

Answer 11

It was written down that there was no intent to create legal relations or the contract to be legally binding so the presumption was rebutted

Question 12

Jones v Vernon’s pools

Answer 12

There was no legal intent here as the small print said that it was not legally binding

Question 13

Kleinwort Benson v MMC

Answer 13

There was no intent to create legal relations as the parent company chose to write a letter of comfort rather than a guarantee

Question 14

Edwards v Skyways

Answer 14

if the words of the pledge are unclear as to whether or not it is binding the courts will just go with the presumption that it is

Question 15

Sadler v Reynolds

Answer 15

Where it is unclear what type of agreement it is, the person who wants it to be binding has responsibility of proving that