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INTENTION TO CREATE LEGAL RELATION (Topic 6) - Coggle Diagram
INTENTION TO CREATE LEGAL RELATION
(Topic 6)
Introduction
Intention of the
parties to enter into legal obligations.
(For a contract to be valid)
Communicated clearly or informally.
Meaning
Purpose to form a contractual partnership.
Expect the other person to be bound by commitments.
Legal presumptions on intention
(A) Domestic or social agreement
a) General Rule: Agreements among families and those pertaining to social agreements are considered not to be legal contracts.
Case: Balfour v Balfour and Jones v Padavatton
b) Exception to General Rule: The general rule can be challenged if clear evidence of intent to form a legal connection is given, including language and case facts.
Case: Merritt v Merritt
Parties in domestic or social agreements rarely seek to establish legal connections, but those in business agreements may do so.
(B) Commercial Agreement
a) General Rule: Agreements governing business and commerce typically aim to establish legal relations.
Case: Kwong Kum Sun Pte Ltd v Lian Soon Siew
b) Exception to General Rule: The assumption that legal relations are created in commercial agreements is rebuttable if the circumstances contradict it.
Case: Rose & Frank Co v Crompton Bros
Certainty
The general rule is that every contract should be certain.
Section 30 of the Contract Act
Proof of uncertainty: language used is vague and certain terms are vague
Case: Karuppan Chetty v SuahThian