Legal relations

Question 1

is the test for intention subjective or objective?

Answer 1

objective - intention of the parties is to be determined more by what the actions of the parties in the particular circumstances suggests.

Question 1

meaning of intention to create legal relations

Answer 1

an intention to enter into an agreement that has legal ramifications (results). one of the necessary requirements of a binding contract

Question 2

Commercial agreements

Answer 2

include agreements between individuals and businesses and agreements between individuals

Question 3

difference between commercial and domestic agreement

Answer 3

commercial - there IS an intention to create legal relations

domestic - there IS NOT an intention to create legal relations

Question 4

meaning of ‘subject to contract’

Answer 4

parties do not intend to be bound until the formal execution of a contract

an agreement ‘subject to contract’ is not binding

Question 5

Why are domestic agreements presumed to NOT have the intention to create?

Answer 5

(family and friends)- None of the parties would reasonably envisage the right to sue the other for failure to honour the commitment.