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INTENTION TO CREATE LEGAL RELATIONS CASE LIST

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11 views

INTENTION TO CREATE LEGAL RELATIONS CASE LIST

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sithhara17
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© © All Rights Reserved
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INTENTION TO CREATE LEGAL RELATIONS

Presumption

(Assumption in the absence of evidence)

 Social (between friends) and Domestic ( between family members) agreements

Presumption – do not intent to create legal relations

Balfour v Balfour (1919) - husband and wife

-The husband when leaving to work overseas promised to pay his wife a certain amount of money each
month, following the parties separation the wife sued him for the money.

- Atkin LJ –as a matter of policy, domestic agreements are outside the jurisdiction of the courts, for if not
the courts will be overwhelmed by such commonly entered agreements.

Jones v Padavatton (1969)- mother and adult child

-The daughter who was an unmarried mother living overseas, was promised by her mother that if she
came to England she will provide money for her education and upkeep of the child. After arrival the
mother initially kept her promise but differences between the two led to withdrawal of support.

Coward v MIB (1963) – 2 friends

-One friend undertook to take the other to work on his motorcycle and the other promised to contribute
to the cost of petrol.

Wilson v Burnett (2007) – bingo winning between friends

-Two women claimed to have an oral agreement with the defendant that if any of them won more than
£10 at bingo they would share the money equally

 Commercial agreements

Presumption – intends to create legal relations

Esso Petroleum V Commissioners of Customs and Excise (1976) – normal commercial contract

-Esso, a petrol company, advertised that customers would receive one free World Cup coin showing the
1970 English football team for every four gallons of petrol purchased.

-The transaction took place in a business setting, and amounted to a legal offer beyond a mere ‘puff’
that gave Esso commercial advantages. There was an intention to create legal relations

Dresdner Kleinwort v Atrill (2013) – employment relationship


Can be rebutted by evidence

 Social (between friends) and Domestic ( between family members) agreements

Merritt v Merritt (1970) – separated husband and wife

-Presumption was rebutted because the husband and wife had separated, she had met him outside in a
non-domestic environment to consider the matter of maintenance payments and she had insisted that
he put down the promise to pay in writing.

Dark v Strout (2003) – family member – formality of the letter

-The couple had separated but the man did not keep his promise to give maintenance including child
support. Presumption was rebutted because legal words had been used to make the promise and the
women had given up her statutory right to claim maintenance relying on the promise.

Soulsbury v Soulsbury (2007) – he got some thin in return

-Presumption was rebutted because the separated wife had agreed to forgo maintenance payment in
return for the husbands promise to leave her property under his will.

-Generally on the breakdown of a marriage presumption is rebutted

Simpkins v Pays (1955) – not family members but co-habitees

- Presumption was rebutted; the paying lodger had contributed to the competition by filling the forms
with the defendant’s name with the expectation that any prize as promised by the defendant would be
shared

-The promise to share the reward was binding

 Commercial agreements

Kleinwort Benson v Malaysia Mining Co Berhad (1989) - a comfort letter – to avoid a bad reputation we
will not go to court, thus the contract will not be binding

Rose and Frank v Crompton (1925) – an honour clause – in the contract there is a clause that they will
not go to court if there is a problem
OBJECTIVE TEST

Domestic and social agreements – presumed that you not intend a breach of the agreement to result in
legal action

Commercial agreements – Presumes that you intent to create legal relations

In deciding this;

Edmonds v Lawson (2000)

-An objective test is used to determine whether or not the parties intended to create legal relations, in
deciding so the nature of the agreement and its context will be relevant

*Q* whether or not reasonable parties to such an agreement would possess an intention to create legal
relations?

President of the Methodist Conference v Preston (2013)

-Given the spiritual context of the agreement it was not intended to be legally binding
.

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