ITCLR

Authority on rebuttable presumption of no ITCLR in domestic/ social arrangements

Balfour v Balfour [1919]

Authority displacing rebuttable presumption of no ITCLR in domestic arrangements

Merritt v Merritt [1970]

Balfour v Balfour [1919] cf.

• Verbal agreement between wife + husband for latter to pay £30 per month to the other, as wife remained in UK whilst husband moved to Sri Lanka

• Dispute arose between them + wife began divorce proceedings

• Wife sought to enforce £30 agreement

• Trial judge held: was a contract

• CA held: no contract

Balfour v Balfour [1919] ratio decidendi

Atkin LJ: no ITCLR

Duke LJ: no consideration given by wife

Warrington LJ: not possible to imply contract

Authority on presumption of ITCLR in commercial arrangements

Edwards v Skyways [1969]

Lord Clarke in RTS Flexible Systems Ltd v Molkerei Alois Muller GmbH and Co KG [2010]

“It depends not upon their subjective state of mind, but upon a consideration of what was communicated between them by words or conduct…”

Authority on no ITCLR in social arrangements

Jones v Padavatton [1969] or Lens v Devonshire Club [1914]

Jones v Padavatton [1969] cf.

Agreement between mother and daughter to pay the latter an allowance if

she studied for the Bar.

Held: No ITCLR

Lens v Devonshire Club, The Times, 4 December 1914 cf.

The winner of a golf tournament was not entitled to sue for the prize. It was a social competition and there was no ITCLR

Presumptions of no ITCLR in domestic/ social arrangements can be rebutted by:

• parties separated prior to making agreement

• element of commercial dealings

• parties have acted to detriment or agreement has been executed

Merritt v Merritt [1970]

Parties separated prior to making the agreement

Snelling v John Snelling Ltd [1973]

An element of commercial dealings between parties

Parker v Clark [1960]

Parties have acted to their detriment or the agreement has been executed

Simpkins v Pays [1955]

Rebutting factors also apply to social arrangements

Presumptions for ITCLR in commercial arrangements can be rebutted by:

express stipulation

Rose and Frank Co v JR Crompton and Bros Ltd [1925]

is an example of express stipulation