Intention to create legal relations Flashcards
(19 cards)
What are the three essential elements for a binding contract?
Offer and acceptance, intention to create legal relations, consideration
What does ‘intention to create legal relations’ mean?
An intention to enter into an agreement with legal ramifications
How is the test of intention to create legal relations determined?
Objectively, based on the actions of the parties rather than their mental states
In which case did Lord Denning state that courts look at the situation rather than the parties’ minds?
Merritt v Merritt [1970] 1 WLR 1211
What is the presumption regarding commercial agreements?
There is an intention to create legal relations
What is the presumption regarding social/domestic agreements?
There is no intention to create legal relations
What burden does a party have if they wish to assert that legal relations were not intended in a business agreement?
The onus is on them to rebut the presumption
What is required for wording to rebut the presumption of legal intention in commercial agreements?
Clear wording that indicates the parties do not intend to create legal relations
What was the court’s conclusion in Carlill v Carbolic Smoke Ball Co Ltd regarding advertisements?
The advertisement was a unilateral offer to contract
In Esso Petroleum Co. v Commissioners of Customs and Excise, what was debated regarding the ‘World Cup coins’?
Whether there was an intention to create legal relations for the coins
Under what conditions can collective agreements between trade unions and employees be presumed to be legally binding?
If they are in writing and contain a provision indicating the intention to be legally enforceable
What does the expression ‘subject to contract’ imply?
The parties do not intend to be bound until the formal execution of a contract
In social and domestic agreements, what is the usual presumption?
There is no intention to create legal relations
What was the outcome in Balfour v Balfour regarding agreements between spouses?
The courts showed an unwillingness to find an intention to create legal relations
Which case demonstrated that social agreements can be legally enforceable under certain circumstances?
Merritt v Merritt [1970] 1 WLR 1211
What was the conclusion in Jones v Padavatton regarding the agreement between mother and daughter?
The arrangement lacked contractual intent
Fill in the blank: The intention to create legal relations is an _______ element in the formation of a contract.
essential
True or False: The presumption that there is no intention to create legal relations in social agreements can never be rebutted.
False
What is needed alongside intention to create legal relations to form a binding contract?
Offer and acceptance, consideration
