intention to legal relations Flashcards

You may prefer our related Brainscape-certified flashcards:
1
Q

what is meant by intention to create legal relations

A

whether or not the parties intended the contract to be legally binding when they created it

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

what are the two categories for intention to create legal relations

A

social/ domestic, commercial

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

what is the starting point known as

A

the presumption

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

what is the presumption for social/ domestic contracts

A

no intention

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

what must a party do if they want to make the contract legally binding in a social/ domestic agreement

A

rebut the presumption (prove that there was intention)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what is a case for marriages where there was no contract (£30 a week)

A

balfour, husband agreed to pay wife £30 a week whilst he was working abroad. when they separated, husband refused to pay anymore. wife sued under breach of contract. courts said there was no contract because there was no intention to create legal relations because they were married and together when contract was made.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

what is a case involving marriage where there was a contract

A

merrit. husband left wife. after divorce he agreed to pay her a monthly amount so she could pay her mortgage and wrote this down in a latter. he stopped paying, she sued. there was intent because they were separated when contract was made and it was in writing.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

what is a contract involving a mother and daughter.

A

Jones. mother persuaded daughter to give up her high paid job to study for the bar. mother bought daughter a house to live in whilst she studied. mother sought to repossess house. daughter claimed she could not be kicked out because they had formed a contract. no contact, domestic arrangement.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

what is the case involving two married couples where there was intention

A

parker, younger married couple sold their house and gave the money to their daughter to buy a flat to move in with older couple and care for them, on the grounds that they would be left the older couples house in the will. the younger couple could not be taken out of the older couples will. they had financially relied on the promise by selling their house and giving the money away, this proved intention. also the older couple initially putting the younger couple in their will proved intention.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what is a case for families entering business together.

A

snelling. 3 brothers, all directors of a family company, entered into an agreement. thsi was considered a commercial agreement and there was intent.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

what is a case involving friends giving each other lifts

A

buckpitt. two 18 year olds had an arrangement to share lifts and share petrol money. on one of the journeys a friend was injured due to the others negligence. he could only get compensation if it was proved that they had a contract. no contract, no intention.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what is a case involving friends giving lifts where there was a contract

A

albert. for 8+years one work colleague had given the other two a lift to work and they paid him. one colleague was killed in an accident. his family could claim compensation because there was a contract, well established agreement with established, set-out payments.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

what was a case involving bingo where there was no contract

A

wilson. three friends had a casual conversation agreeing to split any prize money three ways before enterring a game of bingo. one friend won 100,000 but refused to split it. there was no contract. C of A said that ‘casual conversations’ could not amount to legally binding contracts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

what is a case involving a syndicate

A

simpkins. three people regularly entered competitions together, each chipping in with entry fees and agreeing to split any winnings. when one friend won £750 and refused to split it, there was a contract because the agreement involved money and was well established due to it being regular.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what is the presumption for commercial agreements

A

there is intention

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

what does a person that doesnt want the contract ahve to do

A

rebut the presumption that there is legal intention

17
Q

what is a case involving a unilateral contract

A

carlill v carbolic smoke. one of the arguments was that the offer was merely an advertisement puff. the courts said that adverts promising an award proved intention and so there was a contract

17
Q

what is a case involving a unilateral contract

A

carlill v carbolic smoke. one of the arguments was that the offer was merely an advertisement puff. the courts said that adverts promising an award proved intention and so there was a contract

18
Q

what is a case involving a petrol company

A

esso, esso released a promotion to increase its sales where if you bought a gallon of petrol you would recieve a ‘world cup coin’. customs and excise wanted to charge them tax on this but it had to be proven that there was legal intent to supply coins and therefore a contract to do so. there was a contract, ‘commercial gain’ was enough to prove that there definitely was intention to legal relations

19
Q

what are the rules around clear wording

A

if a business uses very clear wording stating that there is no legal intention then the courts will accept this.

20
Q

what is a case for clear wording

A

vernon’s pools, clear wording negating legal intent= no contract

21
Q

what is a cse involving comfort letters

A

kleinwort, comfort letters are not binding

22
Q

what is a comfort letter

A

a letter assuring one aprty on the other’s competence and reliability

23
Q

what does the term ‘ex gratia mean’

A

out of goodwill

24
Q

what is a case involving ex gratia

A

edwards, employee was promised a sum of money if he was made redundant. it stated in the letter that this policy was ‘ex gratia. the phrase ‘ex gratia’ was irrelevant because it still implied intention to pay. there was a legally binding contract.

25
Q

what are the rules around the term, ‘subject to contract’

A

using the term is enough to display no intent until the contract has been drawn up and signed by both parties.

26
Q

what are the rules around trade unions

A

any trade unions negotiations are assumed not to have intent until they are drawn up in a contract and both parties have agreed.