Intention to Create Legal Relations - Paper 3

Question 1

What does intention to create legal relations mean?

Answer 1

Did the parties intend to form a contract

Question 2

What is the presumption for business agreements?

Answer 2

They are presumed to be legally binding unless proven otherwise/rebuttable presumption (Jones v Vernon’s Pools)

Question 3

What is the presumption for social/domestic agreements?

Answer 3

There is a presumption that they are not intended to be legally binding (Balfour v Balfour) unless proven otherwise (Merritt v Merritt)

Question 4

What was the decision in Simpkins v Pays?

Answer 4

If money changes hands, it is more likely to be legally binding

Question 5

Which case held if the parties put their financial security at risk it is more likely to be legally binding?

Answer 5

Parker v Clarke