Intention to create legal relations (sue)

Question 1

ICLR Definition

Answer 1

Whether the parties were willing to take eachother to court if the contract was breached

Question 2

A01- ICLR

Answer 2

Business agreements:
- Presumed to be legally binding (Esso v customs)
- A pre contractual statement with no clear promise is not ICLR (Kleinwort v Mining corp)
- Gentlemans agreement is only bound in honour, not law (Jones v vernon pools)

Situations of no ICLR:
- Ex gratia voluntary payment (Edwards v Skyways)
- Free gifts
- Competitions (McGowen v Radio Buxton)
- Letter of comfort
- Half way house, burden of proof is upon the claimant (Sadler v Reynolds)

Social and domestic agreements:
- Presumed to not be legally binding (Balfour v Balfour)
- Presumption is rebutted if:
> parties are family and friends (snelling v snelling)
> Domestic relationship has broken down (Merritt v Merritt)
> Reliance on the contract (Simpkins v pays)