Intention To Create Legal Relations

Question 1

Governed by

Answer 1

Various common laws

Question 2

Commercial agreements: in a commercial agreement it is presumed the parties are intending to create a relationship that is legally enforceable

Answer 2

Edwards v skyways Ltd

Question 3

Commercial agreements: if a party is trying to gain a commercial advantage to increase revenue through a promotion it is presumed there is an interest to create legal relations

Answer 3

Esso v Customs and Excise

Question 4

Commercial agreements: if a party is trying to gain a competitive advantage to increase listeners, advertising revenue etc through a competition it is presumed there is an intention to create legal relations

Answer 4

McGowan v Radio Buxton

Question 5

Commercial agreements rebuttals: there is no intention to create legal relations when there are clear words that indicate there is no legal intent

Answer 5

Rose and Frank v Crompton

Question 6

Commercial agreements rebuttals: there is no intention to create legal relations when there is wording that states or indicates that the agreement is binding in honour only and it is put to the party whether they choose to honour it or not

Answer 6

Jones v Vernon Pools

Question 7

Commercial agreements rebuttals: there is no intention to create legal relations when a letter of comfort provides assurances regarding a third parties ability to pay a loan for example, but provides no legal obligation on the provider of the letter to pay it

Answer 7

Klienwort benson Ltd v Malaysian mining corporation

Question 8

Social and domestic agreements: in a social and domestic agreement, it is presumed the parties are NOT intending to create a relationship that is legally enforceable, as the agreement is made when the parties had an amicable relationship

Answer 8

Balfour v Balfour, Jones v Padavatton

Question 9

Social and domestic agreements: it is also presumed in social and domestic agreements regarding the parties sharing the winning form the lottery or bingo that there is no intention to create legal relations where is there is a one off comment with no certainty of terms

Answer 9

Wilson v Burnett

Question 10

Social and domestic agreements rebuttals: there is AN intention to create legal relations when the parties were no longer in a loving and affectionate relationship at the time of the agreement

Answer 10

Merritt v Merritt

Question 11

Social and domestic agreements rebuttals: there is AN intention to create legal relations when there is an exchange of money between parties, indicating it is more than a social and domestic agreement

Answer 11

Simpkins v Pays

Question 12

Social and domestic agreements rebuttals: there is AN intention to create legal relations when one party relied on the promise of the other party and risked their financial security due to it

Answer 12

Parker v Clarke

Question 13

What is a commercial agreement

Answer 13

An agreement for the purpose of trade and usually between businesses

Question 14

What is a social or domestic agreement

Answer 14

An agreement between friends or family and not for the purpose of trade