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ITCLR - Coggle Diagram
ITCLR
for an agreement to be legally binding
both parties must intend to create legal relations
i.e both parties intent to be legally bound by the terms of the agreement
does agreement have intention to create legal relations?
Domestic/social agreement
family and friends
Parties do not intend legal relations
legal intent not assumed
Presumption
parties to a social / domestic agreement do not intend to create legal relations
Balfour v Balfour
agreement between husband and wife while marriage in existence
consider
application of principle to unmarried cohabitating relationships?
Jones v Padavatton
Coward v Motor Insurers Bureau
BUT presumption may be rebutted by evidence that parties do intent to create legal relations
Meritt v Meritt
rebutting presumption
consider nature of relationship between parties
consider context of agreement
Commercial agreement
Parties do intent legal relations
Agreements between businesses and consumers
Presumption
parties to a commercial agreement do intend to create legal relations
Esso v Commrs for Customs and Excise
but presumption may be rebutted by evidence that parties no not intend to create legal relations
intention of parties assessed objectively
by that of a reasonable person