intention

• intention to create legal relations

  The parties must intend to enter into a legally binding arrangement in which the rights and obligations of the agreement are enforceable.

  The law will make a presumption based on the surrounding setting and context of how the contract was made. However, evidence can rebut this presumption.
• Business agreement


  Presumption is that it does intend to create legal relations

  Business agreements are presumed to be legally binding, but evidence can rebut this

  PRINCIPLE: Where a promise is made with the purpose of gaining more business, the Courts will presume there is ICLR
• Social/domestic agreements


  Presumption is that it doesn't intend to create legal relations
• The burden of proof will be on the party claiming that there is no intention
• Social and domestic agreements

  Presumed not to be legally binding (no ICLR)
• The more domestic the agreement


  The less likely the courts will presume there was ICLR
• Cases- show ICLR - more domestic - less likely


  • BALFOUR V BALFOUR
  • MERRITT V MERRITT
• JONES V PADAVATTON (1969)


  Whether there is ICLR in domestic arrangements will depend on the facts. Evidence of an agreement made during a close relationship will be evidence of NO ICLR.
• SIMPKINS V PAYS (1955)

  Social agreements where money changes hands will be construed as a business agreement, with ICLR.
• WISLON V BURNETT (2007)

  The continuous query provided evidence that there was no ICLR.
• PARKER V CLARKE (1960)


  If parties put their financial security at risk for an agreement, then there must have been ICLR.