Intention to create legal relations

Cards (2)

  • Intention To Create Legal Relations

    • Depends on the relationship!
    • Parent and Child: Jones v Padavatton [1969] 1 WLR 328
    • Husband and wife: Balfour v Balfour [1919] 2 KB 571
    • Merritt v Merrit [1970] 1 WLR 1211
    • Other social/domestic: Simpkins v Pays [1955] 1 WLR 975
    • Commercial Contracts: Esso Petroleum Ltd v Customs and Excise Commissioners [1976] 1 WLR
    • Note: Leonardo v Pepsico 88 F. Supp. 2d 116, (S.D.N.Y. 1999), American case -is it binding?
  • Capacity

    • Capacity relates to soundness of mind of a person's actions whereby that person has the capacity to enter into a legal relation under the same conditions as a person of sound mind or normal intelligence would have the power to enter.
    • The main categories refer to minors and people with mental incapacity.
    • Generally, a minor will not be bound by a contract. Fawcett v. Smethurst (1914) 84 LJKB 473, (Atkin J).
    • People suffering from mental disability or drunkenness when the contract is made may be seen to have mental incapacity. Gore v. Gibson (1845) 13 M & W 621; 153 ER 260