Chapter 2: Intention to Create Legal Relations

Flashcards covering Chapter 2: Intention to Create Legal Relations, including rebuttable presumptions in commercial and domestic agreements, key rebuttal factors, and specific scenario outcomes.

What is the legal presumption regarding intention in commercial agreements?

Intention is present (the presumption is very strong, but rebuttable).

What is the legal presumption regarding intention in domestic agreements (family, close friends)?

Intention is not present (though the presumption is rebuttable).

What does the category of "commercial" agreements encompass?

Any non-domestic deal, such as shopping online or buying a second-hand bike.

Does the commercial presumption of intention apply if the subject matter is trivial, and what example illustrates this?

Yes, it applies even where the subject matter is trivial, as seen with Esso World Cup coins.

How can the presumption of intention in a commercial agreement be rebutted?

Only by a clear express statement, for example "binding in honour only".

What factors can rebut the presumption of lack of intention in domestic agreements?

The closeness of the relationship, the money at stake, solicitors being involved, and express agreement.

Is legal intention present in an agreement between divorcing spouses dealing via solicitors?

Yes.

Is legal intention present between friends entering into a joint business venture, and why?

Yes, because there is a lot of money at stake.

Is legal intention present when siblings expressly agree to be bound?

Yes.

Is legal intention present in a house sale between cousins, and why?

Yes, because the arrangement is valuable and formalised.

Is legal intention present in an agreement between a parent and child regarding a £10 allowance, and why?

No, because the relationship is close and the amount is nominal.