intention to create legal relations

• intention to create legal relations

  there must be an intention of both parties to create legal relations and make the contract legally binding
• presumption

  a legal starting point when making a decision
• rebuttal

  to dismiss a presumption due to evidence to the contrary
• business agreements are presumed to be legally binding

  • the offer of a free gift (Esso Petroleum)
  • prizes offered in competitions (McGowen v Radio)
• business agreements rebuttal

  • evidence it's not intended to be legally binding (Jones v Vernon Pools)
  • vague or clearly not intended to be taken seriously (Maclnnes v Gross)
  • comfort letter (Kleinwort Benson)
• social and domestic arrangements between friends and family not legally binding

  (Balfour v Balfour)

  (Jones v Padvatton)
• social and domestic arrangements rebuttal - intended to be legally binding

  • (Merritt v Merrit) - agreement was made after they had already separated
  • (Simpkins v Pays) - rebutted by the presence of an outsider
  • (Parker v Clark) - did intend the agreement to have legal force
  • (Redmacher v Graniting) - prenuptial agreements
• halfway house cases, between domestic and commercial arrangements

  (Salder v Reynolds)