ITCLR

Question 1

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- Balfour v Balfour

Question 2

How Presumption in Domestic contracts can be rebutted

Answer 2

• 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
• That there will be legal intent where there is a commercial basis to the contract, Albert v MIB

Question 3

Presumption in Commercial contracts

Answer 3

That commercial contracts have a very strong rebuttable presumption that there is intention to create legal relations- Carlill v Carbolic Smoke Ball Company

Question 4

How the presumptions can be rebutted in commercial cases

Answer 4

• That the commercial presumption can be rebutted if clear words are used to show no legal intent-Jones v Vernon Pools
• That the commercial presumption may be rebutted where the words used are not clear enough to amount to a specific promise-Kleinwort Benson v Malaysia Mining
• That a statement indicating no previous legal liability may be seen as merely explaining the offer which is now being made Edwards v Skyways