O&A - Intention to Create Legal Relations Flashcards

1
Q

Who are the two key categories of people/relationship that may intend to be legally bound by a promise?

A
  1. Social, Domestic and Family relationships

2. Business/Commercial relationships

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2
Q

Within the ‘social’ category what are the four sub-categories of relationship which may give rise to an intention to be legally bound?

A
  1. Agreement between husband and wife
  2. Other types of domestic agreement
  3. Agreements between parent and child (family)
  4. Social relationships
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3
Q

What is the presumption regarding intention to create legal relations between a husband and wife happily living together? (1)

A

There is a presumption against an intention to create legal relations
Authority - Balfour v Balfour

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4
Q

What is the presumption regarding intention to create legal relations between a husband and wife not happily living together? (1)

A

There is a presumption if favour of an intention to create legal relations
Authority - Merritt v Merritt

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5
Q

What type of people are referred to by the sub-category ‘other types of domestic agreement’?

A

People living together but with no familial or legal ties.

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6
Q

What is the presumption regarding an intention to create legal relations within ‘other types of domestic agreement’? (1)

A

If the terms of an agreement are sufficiently clear and certain and there was reliance on the part of the parties, intention to create legal relations can be made out
Authority - Parker v Clarke

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7
Q

What is the presumption regarding an intention to create legal relations between a parent and child?

A

The general rule is that there is no intention to create legal relations in such situations between family members.

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8
Q

What is the exception to the presumption against the intention to create legal relations between parent and child? (1)

A

Where the interaction between the parties evidences an Intention to Create Legal relations the court will rebut the presumption
Authority - Jones v Padavatton

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9
Q

What is the presumption regarding the intention to create legal relations within ‘social relationships’? (1)

A

The general rule is that there is a presumption against the intention to create legal relations between parties who have a social relationship
Authority - Coward v Motor Insurers’ Bureau

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10
Q

What is the exception to the presumption against intention to create legal relations between parties with a ‘social relationship’? (1)

A

Where the parties dealings evidence that a commercial dealing has occurred the presumption will be rebuffed
Authority - Albert v Motor Insurers’ Bureau

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11
Q

What is the general rule regarding an intention to create legal relations in commercial relationships? (1)

A

The general rule is that there is a presumption in favour of an intention to create legal relations
Authority - Edwards v Skyways

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12
Q

What will the courts consider when hearing claims by parties attempting to rebut the presumption in favour of an intention to create legal relations in commercial relationships?

A
  1. The seriousness of the promise made
  2. How precisely the promise was made
  3. The degree of reliance on the promise
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13
Q

In what instances may an individual be able to successfully rebut the presumption in favour of intention to create legal relations in commercial relationships? (3)

A
  1. Where an advertisement is ‘a mere puff’
    Authority - Carllil v Carbolic Smoke Ball
  2. Where there is an express declaration to the contrary
    Authority - Rose & Frank v Crompton & Brothers
  3. Where there is an implied agreement to the contrary in the commercial context
    Authority - Baird Textiles Holdings Ltd v Marks & Spencers Plc
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14
Q

What is the key question to be answered when considering the rebuttal of the presumption in favour of an intention to create legal relations in commercial relationships? (1)

A

‘Would the promise be understood by the reasonable person as constituting a binding offer’ - Bowerman v ABTA Ltd

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