ITCLR

Question 1

the presumption in domestic contracts

Answer 1

That contracts made between family members have a rebuttable presumption that there is no intention to create legal relations
Jones v Padavatton,
Balfour v Balfour

Question 2

the presumption in commercial contracts

Answer 2

That commercial contracts have a very strong rebuttable presumption that there is intention to create legal relations, Esso v commissioners

Question 3

how can the presumption in domestic contracts be rebutted

Answer 3

That there will be legal intent if the parties are no longer acting on the basis of love and affection - Merritt v Merritt
That there will be legal intent if the parties have acted in reliance on the promise - Parker v Clark, Simpkins v Pays
That there will be legal intent where there is a commercial basis to the contract - Albert v Motor Insurer’s Bureau

Question 4

how can the presumption be rebutted in commercial contracts

Answer 4

where the words of a contract, or an offer, suggest that legal relations were not intended (in honour only) - Jones v Vernon Pools
here the words used are not clear enough to amount to a specific promise - Kleinwort Benson v Malaysia Mining