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Intention to create legal relations (ICLR) - Coggle Diagram
Intention to create legal relations (ICLR)
Presumptions
General
Presumption = Flexible and contextual + may be rebutted (a
prima facie
rule)
Objectivity - Parties are judged based on their 'presumed intention', which is based on their words, deeds or writings
Social/Domestic contexts
Presumption: Social/Domestic agreements are not contracts
Cases
Balfour v Balfour [1919]
A husband's promise to pay his wife £30 p/m as maintenance (during their marriage) was not Legally binding (no consideration + the presumption was not rebutted)
Jones v Padavatton [1968] EWCA Civ 4 (?)
Exceptions
(1) When the parties are splitting up their property and 'separating'
Merritt v Merritt
Here, the Couple were 'splitting up', and the agreement was written, so the presumption was b
Commercial/business contexts
General exceptions
When so unreasonable to take the statement seriously (Blue v Ashley [2017]
Presumption: The parties intend to be legally bound
Cases
Esso Petroleum v Commissioners of Customs and Excise [1975] UKHL 4: 'Took place in a settle of business relations' = Presumption of ICLR
Edwards v Skyways: When the agreement is reached in the course of business, the presumption = ICLR
Rebuttal
By an expression of actual intention
Other
Executory and Executed agreements
Executory - An agreement made before either side has performed any part of the agreement
Executed - This is once performance of the agreement has commenced
Partial execution - when performance has partly begun (?)
The Courts favours executed agreements
Case: Parker v Clark (1960) (the two couples, performance and substantial detrimental reliance)