LAWS211: W2 Intention 02/03

Announcements

  • Please respond to the poll questions while waiting. Not a legal question, just gathering intuitions for class discussion later.

Administrative Announcements

  • Updated tutorial times have been posted due to health and safety reasons.

    • Three new tutorial sessions added to accommodate class sizes.

    • Older tutorial time slots remain unchanged.

    • Tutorial sign-ups will open tomorrow, Tuesday, at 10 AM and close Thursday around 2 PM. An email will be sent with details.

  • Class representatives are needed, particularly for level 200 papers.

    • Important for communication between students and lecturers.

    • Class representatives can relay concerns and facilitate communication.

    • They can also assist lecturers in gauging class sentiment on various issues.

    • If interested in the role, email Mark and me.


Review of Last Week's Class

  • Fundamental Requirement for Contract Formation: Parties must intend for their agreement to be legally enforceable.

  • Legal Enforceability Presumptions from Fleming's Case:

    • First Presumption: In agreements among businesses or in arm's length transactions, there is a presumption that parties intended to create legally binding obligations.

    • Second Presumption: In private agreements among close family or trusted relationships, there is a presumption that parties did not intend to create legally enforceable relations.

  • Presumptions serve as a guide but can be rebutted by evidence, as seen in Fleming's case (agreement between domestic partners).

    • Court concluded Mr. Beavers intended for his promise to be legally binding, overcoming the second presumption through evidence.

Discussion on Autonomy in Contracts

  • Voluntariness of Contractual Obligations: Respecting the voluntary nature is crucial as it distinguishes contract law from torts—where obligations are often involuntary.

  • Traditional answer to contract disputes: It depends on the parties' intent and what they agreed to.

  • Objective Principle: Courts assess parties' intent objectively, which means focusing on what a reasonable person would understand from the parties’ actions and words.


Transition to Smith & Hughes Case

  • Case Overview: Agreement between Smith (seller) and Hughes (buyer) regarding a parcel of oats.

  • Facts:

    • Hughes believed he was buying old oats needed for racehorses.

    • Smith sold new oats, which were unsuitable for Hughes.

  • Procedural Posture: Case resulted from a jury trial with specific instructions from the judge regarding jury findings on intent and knowledge.

    • Jury concluded in favor of Hughes, leading to Smith's appeal based on procedural grounds concerning the jury’s reasoning.

  • First Jury Instruction:

    • Did the term "oaths" refer to the oats in the initial conversation?

    • If so, Hughes is entitled to relief (for old oats).

  • Second Jury Instruction (Disputed):

    • Did Smith know Hughes was contracting for old oats despite the word not being used?

    • The outcome relies on ambiguity regarding whether there was mutual assent.