Contract Law - Intention & Certainty

Question 1

Intention to be Bound

Answer 1

intention to enter legally binding arrangement in which the rights & obligations of the agreement are enforceable

Question 2

2 Types of Agreements

Answer 2

1. social/domestic agreements
2. business/commercial agreements

Question 3

Social/Domestic Agreements

Answer 3

• between family/friends
• assumed to have no intention to be bound

Question 4

Business/Commercial Agreements

Answer 4

• between business associates
• usually binding

Question 5

Balfour v Balfour

Domestic agreement

Answer 5

Husband worked overseas and agreed to pay maintenance to wife monthly. Later failed. Wife sued.

Held: domestic agreement has no intention to be bound - no valid contract

Question 6

Jones v Padavatton

Domestic agreement

Answer 6

Mother agreed to maintain daughter if she studied for the bar exam. Mother provided house for daughter to live in. They then had a dispute about the occupancy and mother sought possesion.

Held: family arrangements are presumed to be made on the basis of mutual trust & affection, lack of formality = no intention

Question 7

Meritt v Meritt

Domestic agreement

Answer 7

Husband left life. Mortgage on jointly owned house had not been paid off yet. Husband signed agreement to pay wife monthly to pay off mortgage, and transfer his shre to her after it was paid off, but refused to do so after.

Held: parties were separated - separated spouses generally intend to be bound + written agreement = valid contract

Question 8

Wakeling v Ripley

Domestic agreement

Answer 8

Defendant convinced plaintiff & her husband to live with him, promising to leave his property to them after death. Husband resigned, and they sold their house to move in with defendant. Later had an argument, plaintiff broke his promise and sold house.

Held: voluminous correspondence & seriousness of the move for the plaintiffs showed intention for the agreement to be legally binding

Question 9

Simpkins v Pays

Domestic agreement

Answer 9

Grandmother, granddaughter & lodger entered a weekly competition. Coupons were sent in grandmother’s name but all 3 took part in making forecasts and took turns paying. They agreed to share winnings. Grandmother received prize money but refused to share.

Held: despite domestic context, filling out coupons was not voluntary, it was pursuant to an agreement where each party had a share - intention for legal relations

Question 9

Certainty

Answer 9

S30 - agreements which are not certain/capable of being made certain are void.

void agreement = not enforceable

Question 10

Karuppan Chetty v Suah Thian

Uncertain terms

Answer 10

Parties agreed upon the granting of lease for ‘as long as he likes’.

Held: contract is uncertain & void