Intention to create Legal Relations

Question 1

Intention to create legal relations intro/ definition

Answer 1

Both parties must intend to create legal relations. This means that they both intended to be legally bound. There are two types of agreement: Social/domestic agreements, and business/ commercial agreements.

Question 2

Intention to create legal relations- type 1

Answer 2

-Social and domestic agreements- the starting presumption is that the parties did not intend to be legally bound (Merritt v Merritt)/ (Balfour v Balfour), unless there is proof of otherwise.

Question 3

Intention to create legal relations- type 2

Answer 3

• Business and commercial agreements- The starting presumption is that the parties did intend to be legally bound, unless there is proof of otherwise (Jones v Vernon’s Pools)

Question 4

Intention to create legal relations- side rules for social situations

Answer 4

Side rule 1- Money changes hands (Simpkins vs Pays)
Side rule 2- The parties put their financial security at risk (Parker vs Clarke)