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Intention to create legal relations - Coggle Diagram
Intention to create legal relations
Presumptions
The view adopted by the court in a certain situation to
begin with
Presumptions can be rebutted, meaning that the courts mind can be changed in a particular case, but they indicate the starting point from which the court begins
Social and domestic agreements
The law should not unnecessarily interfere in
domestic situations
If domestic agreements were to be legally binding,
the courts would be overrun with them and unable
to operate effectively as a result
Balfour v Balfour
Rebutting the presumption:
How certain are the terms?
Jones v Padavatton
Have the parties relied on the terms?
Albert v MIB
The seriousness of the situation
Merritt v Merritt
Commercial agreements
The presumption is that the parties do intend to create legal relations
It is a difficult one to rebut, because one of the main economic purposes of contracts is to encourage trade
Edwards v Skyways
The courts will consider the overall context of each case
Edmonds v Lawson
Clear words can be enough to rebut the presumption
Rose & Frank Co v Crompton bros
For the presumption to apply, there must be an identifiable promise or commitment made
Klienwort Benson v Malaysian mining
Collective bargaining by unions is presumed not to create legal relations
Ford motor Co v AMEU