ITCLR Flashcards
Social and domestic arrangement cases:
Balfour v Balfour [1919]
Jones v Padavatton [1969]
Contracts regarding spouses:
Balfour v Balfour [1919]
“Agreements such as these are outside the realm of contracts altogether.”
“The common law does not regulate the form of agreements between spouses” - Atkin LJ, Balfour v Balfour
Merrit v Merrit [1970]
Rebutting the presumption that between spouses there is no ITCLR
Agreements regarding family:
Jones v Padavatton [1969]
Agreement with mother / daughter. Mother promised £1,800 if daughter passed the bar exam.
Courts held that there was no ITCLR within a domestic agreement.
Cases where there was a possible itclr but rebutted - Social + Domestic
Merrit v Merrit [1970]
Snelling v John Snelling Ltd [1973]
Parker v Clark [1960]
Simpkins v Pays [1955]
Rebutting the presumption
Merrit v Merrit [1970]
Agreements between spouses are not legally enforcable.
The Court held that there was a presumption against the enforceability of agreements between spouses, which could only be rebutted by evidence of clear intention to create legal obligations.
Case where an ITCLR was found between social / domestic arrangements
Parker v Clark [1960]
Parker v Clark [1960]
How was an ITCLR found?
There was a clear ITCLR due to the letters exchanged between the parties.
Additionally, as the contract required one of the parties to sell their house, it showed that reliance on another party has an effect in S/D arrangements if it is to their detriment.
Commercial arrangements
There is a rebuttable presumption that there IS an ITCLR in commercial agreements.
This means that the burden of proof lies to the party which did not intent to create a legal relation.
Commercial arrangement case regarding ITCLR leading to an enforceable agreement:
Edward v Skyways [1964]
Airline promised pilots that were made redundant would be paid a certain amount.
Pilot chose redundancy.
Airline didn’t pay
The court recognised the importance of upholding business agreements and ensuring fairness for employees, even in challenging situations (company facing bankruptcy)
Rose and Frank Co v JR Crompton and Bros Ltd [1925]
