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Contract: Formation

Intention to create legal relations

  • 3 things to know
  • A2 Units 3 and 4

Overview

Presumption that applies to social and domestic arrangements and presumption that applies to commercial and business agreements.

What you need to know

Answer each one before you reveal it.

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Key term

What did Simpkins v Pays (1955) decide about a shared competition entry?

Key term

Why was Merritt v Merritt (1970) decided differently from Balfour v Balfour?

Key term

What did Edwards v Skyways (1964) decide about a payment described as ex gratia?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    Why is an intention to create legal relations required in addition to agreement and consideration?

    Model answer

    The courts will not enforce every promise supported by an exchange, so this requirement separates arrangements meant to be legally binding from those the parties intended to rest on trust or goodwill.

  2. 2

    State the presumption that applies to social and domestic arrangements.

    Model answer

    There is a rebuttable presumption that the parties to a social or domestic arrangement did not intend to create legal relations, and the person alleging a contract must prove otherwise.

  3. 3

    What did Balfour v Balfour (1919) decide?

    Model answer

    It decided that a husband's promise to pay his wife a monthly allowance while he worked abroad was a domestic arrangement made while the couple were living in amity, so it was not intended to be legally binding.

  4. 4

    Why was Merritt v Merritt (1970) decided differently from Balfour v Balfour?

    Model answer

    The spouses had already separated when the husband signed a written promise to transfer the house once the mortgage was paid, so the domestic presumption was rebutted and the agreement was enforceable.

  5. 5

    What did Jones v Padavatton (1969) decide about a family arrangement?

    Model answer

    It decided that a mother's promise to maintain her daughter while she studied for the Bar was a family arrangement with no intention to create legal relations, so the mother could recover possession of the house.

  6. 6

    Why was the domestic presumption rebutted in Parker v Clark (1960)?

    Model answer

    The younger couple had sold their own home in reliance on the arrangement to move in and inherit a share of the house, and that serious detriment showed the parties intended legal consequences.

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Law Making in Wales and the UK
Delegated Legislation
Statutory Interpretation
Judicial Precedent

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Roles v Nathan ( ).
196319411945

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AThe defendant owed the victim a duty of care and breached it.
BThe breach carried a reasonably foreseeable risk of death.
CThe breach caused the death.

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Pecuniary loss is financial and measurable.
TrueFalse

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