INTENTION TO CREATE LEGAL RELATIONS

8 points

1. definition

2. business/commercial (EDWARDS)

3. merepuffs (MC GOWAN)

4. clear words rebut (JONES)

5. letters of comfort ( KLEINWORT)

6. social/domestic (BALFOUR)

7. financial reliance (PARKER)

8. unclear relationships (BLUE)

definition

a valid contract requires intention to create legal relations, there are 3 types of contracts; business and commercial, social and domestic and unclear relationships

mere puffs

some offers may include a competition or a reward for entering to agreement. The issue for the court is to determine whether this is mere puff to attract entry to the agreement or an intention to be bound. (MC GOWAN)

mere puffs

some offers may include a competition or a reward for entering to agreement. The issue for the court is to determine whether this is mere puff to attract entry to the agreement or an intention to be bound. (MC GOWAN)

clear words

where there are clear words in the contract then this will rebut the presumption ( JONES)

Letters to comfort

letters to comfort is where a parent company provides assurance to a lender of a supporting, depending on the words and circumstances, it is unlikely to be a legally binding contract ( KLEINWORT)

Social/ domestic

-agreements made in a social and domestic setting will not be legally binding (BALFOUR)

-for separated parties where a couple have separated and an agreement has been made after the ending of the relationship, this may rebut the presumption

• for parents and children where an agreement is within a parental relationship, there will not be an intention to create legal relations

financial reliance

financial reliance is where one party is financially reliant on another, the agreement will be legally binding ( PARKER )

unclear relationships

for unclear relationships this is where the relationship is unclear, the burden to prove an intention to create legal relations is on the party wanting to rely on the agreement ( BLUE )