Scribd
Upload
8 views

Intention to Create Legal Relations_ae3096e57061c99079ecb2a49707ed6f

The document discusses the intention to create legal relations, adopting the English common law approach, which requires parties to intend their agreement to be legally binding. It distinguishes between social and domestic agreements, which are generally presumed not to be legally binding, and business agreements, which are. Notable cases such as Balfour v Balfour and Merritt v Merritt illustrate how the presumption against contractual intention can be overcome in certain circumstances.

Uploaded by

Edison Sia Yiik Shan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
8 views

Intention to Create Legal Relations_ae3096e57061c99079ecb2a49707ed6f

The document discusses the intention to create legal relations, adopting the English common law approach, which requires parties to intend their agreement to be legally binding. It distinguishes between social and domestic agreements, which are generally presumed not to be legally binding, and business agreements, which are. Notable cases such as Balfour v Balfour and Merritt v Merritt illustrate how the presumption against contractual intention can be overcome in certain circumstances.

Uploaded by

Edison Sia Yiik Shan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1

INTENTION TO CREATE LEGAL RELATIONS

There is nothing in our statue that governs this issue. However, we adopt the English
common law approach.
The parties must intend the agreement to be legally binding. (Rose Frank v Crompton Bros)
But how can the court find out what is in the parties' minds? The nearest the courts can get to
discover this intention is to apply an objective test and judge the situation by what was said
and done. The law divides agreements into two groups, social & domestic agreements and
business agreements.
SOCIAL & DOMESTIC AGREEMENTS
This group covers agreements between family members, friends and workmates. The law
presumes that social agreements are not intended to be legally binding. See, for example:
Agreements between a husband and wife living together as one household are presumed not
to be intended to be legally binding, unless the agreement states to the contrary. See:

Balfour v Balfour (1919)

Facts: The defendant, who was about to go abroad, promised to pay his wife £30 per month in
consideration of her agreeing to support herself without calling on him for any further maintenance. The
wife contended that the defendant was bound by his promise.

Held: There was no legally binding contract between the parties. As it was a domestic agreement it was
presumed the parties did not intend to be legally bound.

The presumption against a contractual intention will not apply where the spouses are not
living together in amity at the time of the agreement.

Merritt v Merritt [1970] 2 All ER 760.

Facts: A husband, separated from his wife, wrote and signed a document stating that, in consideration of
the wife paying off the outstanding mortgage debt of £180 on their matrimonial home, he would transfer
the house standing in their joint names into her sole ownership. The wife paid off the outstanding
mortgage debt, but the husband refused to transfer title in the house to her, alleging that his promise was
a domestic arrangement and did not give rise to legal relations.

Held: The husband’s promise was enforceable, the agreement having been when the parties were not
living together amicably. A legal relationship is contemplated where a husband deserts his wife and an
agreement is concluded on ownership of the matrimonial home occupied by the wife and children

You might also like