O&A - Intention to Create Legal Relations Flashcards
Who are the two key categories of people/relationship that may intend to be legally bound by a promise?
- Social, Domestic and Family relationships
2. Business/Commercial relationships
Within the ‘social’ category what are the four sub-categories of relationship which may give rise to an intention to be legally bound?
- Agreement between husband and wife
- Other types of domestic agreement
- Agreements between parent and child (family)
- Social relationships
What is the presumption regarding intention to create legal relations between a husband and wife happily living together? (1)
There is a presumption against an intention to create legal relations
Authority - Balfour v Balfour
What is the presumption regarding intention to create legal relations between a husband and wife not happily living together? (1)
There is a presumption if favour of an intention to create legal relations
Authority - Merritt v Merritt
What type of people are referred to by the sub-category ‘other types of domestic agreement’?
People living together but with no familial or legal ties.
What is the presumption regarding an intention to create legal relations within ‘other types of domestic agreement’? (1)
If the terms of an agreement are sufficiently clear and certain and there was reliance on the part of the parties, intention to create legal relations can be made out
Authority - Parker v Clarke
What is the presumption regarding an intention to create legal relations between a parent and child?
The general rule is that there is no intention to create legal relations in such situations between family members.
What is the exception to the presumption against the intention to create legal relations between parent and child? (1)
Where the interaction between the parties evidences an Intention to Create Legal relations the court will rebut the presumption
Authority - Jones v Padavatton
What is the presumption regarding the intention to create legal relations within ‘social relationships’? (1)
The general rule is that there is a presumption against the intention to create legal relations between parties who have a social relationship
Authority - Coward v Motor Insurers’ Bureau
What is the exception to the presumption against intention to create legal relations between parties with a ‘social relationship’? (1)
Where the parties dealings evidence that a commercial dealing has occurred the presumption will be rebuffed
Authority - Albert v Motor Insurers’ Bureau
What is the general rule regarding an intention to create legal relations in commercial relationships? (1)
The general rule is that there is a presumption in favour of an intention to create legal relations
Authority - Edwards v Skyways
What will the courts consider when hearing claims by parties attempting to rebut the presumption in favour of an intention to create legal relations in commercial relationships?
- The seriousness of the promise made
- How precisely the promise was made
- The degree of reliance on the promise
In what instances may an individual be able to successfully rebut the presumption in favour of intention to create legal relations in commercial relationships? (3)
- Where an advertisement is ‘a mere puff’
Authority - Carllil v Carbolic Smoke Ball - Where there is an express declaration to the contrary
Authority - Rose & Frank v Crompton & Brothers - Where there is an implied agreement to the contrary in the commercial context
Authority - Baird Textiles Holdings Ltd v Marks & Spencers Plc
What is the key question to be answered when considering the rebuttal of the presumption in favour of an intention to create legal relations in commercial relationships? (1)
‘Would the promise be understood by the reasonable person as constituting a binding offer’ - Bowerman v ABTA Ltd
