Intention To Create Legal Relations

Question 1

Define

Answer 1

For agreement to become contract
Both parties must have intention to create ILR
Presumed domestic and social no ILR so not binding
Business and commercial has intention so legally binding

Question 2

Explain, agreements

Answer 2

Domestic and social - between family and friends
Commercials and business - business and consumer (Sadler v Reynolds)

Question 3

Explain presumption based on what agreement

Answer 3

Socials agreements don’t have IRL (balfour v balfour)
Business and commercial agreements is there will be irl (esso v cce)

Question 4

3 factors of social agreements that could rebutt presumption

Answer 4

1. Nature of relationship, better relationship more likely to be domestic (jones v padavatton)
2. The firm the agreement took, more formal more likely to have IRL (Merritt v Merritt)
3. Financial implication of that the larger the financial stakes, more likely agreement has IRL (Parker v Clark)

Question 5

Explain factors for commercial agreements

Answer 5

1. If business is getting a commercial benefit, more likely to be commercial ( esso )
2. If clear words are indicating that the agreement is not intended to be legally binding thus might rebut presumption ( frank v crompton)