Intention to create legal relations

Overview

Presumption for social and domestic agreements, presumption for commercial agreements and status of a football pools coupon.

What you need to know

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Questions from this subtopic

Each one with the model answer underneath.

1. 1

   Why is intention to create legal relations required?

   Model answer

   Intention distinguishes agreements meant to be binding from ordinary social arrangements. Courts will not enforce a promise the parties never intended a judge to police.

2. 2

   How is intention assessed by the courts?

   Model answer

   Intention is assessed objectively from the words used and the surrounding circumstances. A party's private state of mind is not decisive.

3. 3

   What is the presumption for social and domestic agreements?

   Model answer

   Social and domestic agreements are presumed not to be legally binding. The presumption may be rebutted by evidence pointing the other way.

4. 4

   Which case established the presumption in domestic agreements?

   Model answer

   Balfour v Balfour [1919] held that a husband's promise of a monthly allowance was not binding. The couple were living amicably together when the promise was made.

5. 5

   How was the domestic presumption rebutted in Merritt v Merritt [1970]?

   Model answer

   Merritt v Merritt [1970] concerned a written agreement made after the couple had separated. The Court of Appeal held that separated spouses intend their financial arrangements to be binding.

6. 6

   Why did the daughter fail in Jones v Padavatton [1969]?

   Model answer

   Jones v Padavatton [1969] concerned a mother's promise of maintenance while her daughter studied for the Bar. The Court of Appeal held the family arrangement was not intended to create legal relations.

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