Intentions to create legal relations Flashcards
Intention
Billy promises his daughter £5000 if she studies hard at university and gets a first class degree –> Billy’s daughter would not be able to sue him as it is not binding promise due to them being family
Simple Division
Commercial Arrangements - there is rebuttable presumption that agreements are intended to be binding.
Family or social arrangement - there is a rebuttable presumption that agreements are not intended to be binding.
FAMILY / SOCIAL - Balfour v Balfour [1919] 2 KB 571
Husband was stationed in Ceylon as a civil engineer and took a period of leave in England with his wife
Wife became ill and husband returned to Ceylon, promising to pay wife £30/month while away
A few months later they separated, and husband ceased making the payments
Wife sued –> BUT no binding agreement because they were married when the promise was made therefore it failed (
FAMILY / SOCIAL - Merit v Merit
Husband is promising his wife a certain amount of money a month but they had already separated when the promise was made (not divorced yet tho)
Relationship became more businesslike after they became separated –> so the promise he made to her was binding and he had intention to create a legal relationship
FAMILY / SOCIAL - Simpkins v Pays
Mother, daughter and lodger entered agreement where they would by lottery ticket every week by each taking turns and if they won they would split it 3 ways
They ended up winning and refused to give him money –> SO the lodger sued them and won because the relationship between them was social and it was a binding relationship
COMMERCIAL ARRANGEMENTS - Edwars v Skyways
British airways want to lay off pilots but would make them an x gratier payment (payments out of gratitiude / gift) but payment wasn’t made because its not a legal relationship however since it’s a commercial relationship then it is a legal and binding agreement
COMMERCIAL ARRANGEMENTS - Blue v Ashley 2017
Blue and Ashley both get drunk in a pub, Mike Ashley says to Blue if you can raise share price of sports direct then he’ll give him 15 million pounds
Share price goes above £8 so Blue sues Ashley because he didn’t pay up –> HOWEVER Ashley won because it was just banter and not actually serious so there was no intention to create a legal relationship
