Legal relations Flashcards
What are the 2 categories and the presumptions that go along with these?
- Social and domestic agreements have the presumption that there is no intention to create legal relations.
- Commercial and business agreements have the presumption that there is intention to create legal relations.
What happens in social and domestic agreements?
In social and domestic agreements there is a presumption that there is no intention to sue, the party who wants a contract must therefore try to rebut this presumption by showing there was intention.
What are the two contrasting cases for husband and wife cases?
Balfour V Balfour- There was no contract/intention to create legal relations as at the time of the agreement they were together and married so would not have had intention to sue.
Merritt V Merritt- There was a contract as at the time of the agreement they were separated and the agreement was also in writing meaning they had intention to sue if things went wrong.
What are the two contrasting cases involving housing and family members?
Jones V Padavatton- There was no contract as it was a domestic agreement the courts showed their reluctance to be involved so she could repossess the house. This was a split decision as she had given up her financial security.
Parker V Clarke- There was a contract as the Parker’s had given up their financial security by selling the house and giving the money away. As well as the Clarke’s changing the will meant it was legally binding.
If you rely and act on the promise there is a contract.
What are the two contrasting cases involving friends?
Buckpitt V Oates- It was just a casual agreement between two friends which meant that before things went wrong they did not have intention to sue.
Albert V Motors insurers bureau- There was a contract and intention to create legal relations as it was a well-established agreement and regular payments. Effectively become a taxi-service so turned into a commercial agreement.
What are the two contrasting cases involving competitions etc?
Wilson V Burnett- It was just a casual conversation between friends, they did not have intention to sue at the time of the agreement.
Simpkins V Pays- There was intention to create legal relations as it was a well-established agreement and they had all put money in for the winning ticket.
Regular agreements + money = contract.
What happens in commercial and business agreements?
There is a presumption that they have intention to create legal relations, the party who does not want a contract must then rebut this presumption. Very clear evidence is needed to do this.
What are the two cases which show the rule when adverts promise a reward?
Carlill V Carbolic smokeball- There was intention to create legal relations as they had put money away in a building society to meet any claims. Acted on the promise also adverts promising a reward creates a contract.
Esso V Customs and excise- There was intention to create legal relations as there was a commercial gain and the customer would gain even if it was of little value. Protects customers in future cases.
What is the case that shows the rule when it comes to using clear wording?
Jones V Vernon pools- There was no intention to create legal relations as they had used the words ‘this agreement is binding in our honour only’. When clear wording is used the courts will accept this.
What are the cases that show the rule of letters and wording?
Kleinworth V Malaysia mining corp- A comfort letter is not a legally binding document and simply stated the companies policy. There was no intention to create legal relations.
Edwards V Skyways- The words ‘ex gratia’ are no enough to show no intention as the agreement implied payment. There was a contract.
What are the two cases which show the rule on cases which fall between the two categories?
Snelling V Snelling- The brothers entered into a business agreement which therefore meant there was intention to create legal relations and the fact they were brothers became irrelevant.
Sadler V Reynolds- Judge said it fell between a social and a commercial agreement, however the journalist had to prove that there was intention which implies that it leans more towards being a social agreement.
