Intention to Create Legal Relations

objective approach

presumption

rebutabal

level of formality important

religious agreements

important to have intended to create legal relations

Furmston argues its relevence

intention viewed objectively - reasonable bystander

Emo Oil look at language used in light of surrounding circumstances and object -

Analog Devices interpretation based on what document would convey to reasonable person with background knowledge available to parties at the time

Redfern - tesst objective

European Computer Driving Licence Foundaiton give words their natural and ordinary meaning

Investors Compensation Scheme v West Bromwich - matrix of fact (background) exclude prior negotiations - meaning of words considered in context

commercial and literal approach

Rainy Sky if more then one meaning

O'Rourke v Considine court favour commercially sensible construction in determining the meaning ofthe language

King v Ulster Bank - starting point actual text, task to understand intention - take into account background (factual matrix) earlier negotiations irrelevent - what reasonable person understands - if more then one meaning - look at what makes commercial sense - if ambiguous - construe against party responsible for drafting contract

family agreements

Jones v Padvatton can be rebuted by evidence that transaction formally made and recorded

presumption that transactions between family members not intended to be formally made and recorded

husband and wives

Balfour v Balfour married living apart, wife could not travel due to health, promised monthly allowance -no intention to creat legal relations (often arrangments made accompaneid by consideration)

exceptions can exist

Meritt v Meritt husband and wife - lived apart and husband co-habiting with someone else - intention to create legal relationships

parents and children, siblings

Jones v Padvaton mother promised daughter allowance if left Washington to study the bar, after 3 years not completed the bar and daughter evicted - no intention to create legal relations (very close )

Haggar - being looked after by mother and brother after RTA - recorded in writing - every intention to create legal relations

Coleman v Mullin befriend person after husbands death, daily chores - no entitlement to money as no intention to create legal relations - don't want voluntary help leading to compensation

commercial agreements

parties presumed to create legal relations - negotiate at arms lenght

Simpkins v Pays newspaper ran competition, granddaughter, granny and lodge entered together - syndicate present

O'Rourke v Talbot heavy onus trying to say legal relations not intended

exceptions

mere puffery

Lexmead v Lewis device called fool proof and absolutely no maintenance - language not contractual just puffery

express exclusions of enforceability

advertising language often exagerated

Rose & Frank v Crompton honourable pledge clause - no intention of creating legal relations

pharase subject to contract

Bieber v Teachers invesmtent in film and TV, emails between parties soclitiors,- binding settlement reached without indeminity clause

collective agreements

agreement included in indivdiual contracts after negotiations

said to be binding on all parties - - Ford (english case) presumption not contract

Goulding Chemcial v Bolger collective agreement binding on majority who had accepted it but not on minority who had opposed it

Kenny v An Post practice developed over time by supervisor - not in writing - employer not bound by superivosr

Irish Pharmaceutical Union v Health - dominant view - collective bargaining not intended to create legal relations

imprecise or incomplete contracts

Tolan v Connacht Gold agreement still lacked important details - never intended to create legal relations

letter of comfort

assurance provided by parent company if something happens to related body

not usually a contract - used to pressur parent company (adverse publicty and reputational damage

Kleinwort Benson v Malaysia Mining Corp comfort letter - had refused to give a guarantee - no intention to create legal relations

Banque Brussels Lambert - defendant owned 45% of issued capital, letter of comfort - court criticised kleinwort - commercial agreements should be given commercial affect and not just treated as honourable agreement

some certainty required Baird Textile Holdings v Marks and Spencers - no agreement on prices or quanitites indicated did not intend to create legal relations