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Intent to create legal relations - Coggle Diagram
Intent to create legal relations
Business and commercial agreements
Presumed that it is an intention to create legal relations. This can be rebutted.
Edward v Skyways (1964)
Esso Petroleum Co. Ltd v Commissioners of Customs and Excise (1976)
Rose and Frank Co. v J.R. Crompton v Bros Ltd (1924 and 1925)
Social and domestic agreemtents
Presumed to be no intention to create legal relations.
Three main areas these relations tend to arise:
Husband and wife
Children and parents
Other social agreements
Husband and wife
This was rebutted in:
These agreements are not usually binding.
Balfour v Balfour (1919) – the couple were happily married
Merritt v Merritt (1970) – there was an agreement signed. The couple had split
Children and parents
It is possible for families to make contracts which appear to be formal contracts.
Jones v Padavatton (1969)
Other social agreements
The presumption is that there is generally not an intention to create a legally binding relationship.
If money has changed hands it can be presumed to be legally binding.
Simpkins v Pays (1955)
It will not always be rebutted.
Wilson v Burnett (2007)