· Offer · Acceptance · Consideration · INTENTION TO CREATE LEGAL RELATIONS · RTS Flexible Systems Ltd v Molkerei Alois Muller [2010] · Per Lord Clarke . Whether there is a binding contract between the parties and, if so, upon what terms depends upon what they have agreed. It depends not upon their subjective state of mind, but upon a consideration of what was communicated between them by words or conduct, and whether that leads objectively to a conclusion that they intended to create legal relations and had agreed upon all the terms which they regarded or the law requires as essential for the formulation of legally binding relations. · Santa and Rudolph agree to live together · Santa agrees to do all the shopping and cooking in return for Rudolph agreeing to do all the cleaning and washing · Offer, acceptance and consideration are all present · Is agreement intended to be legally enforceable? · 2 Presumptions Rebuttable presumptions - ie evidence based (1) Domestic and social arrangements - Presumption of 'no intention to create legal relations' (2) Commercial agreements - Presumption of 'intention to create legal relations' No intention to Create Legal Relations • Balfour v Balfour (1919) – Lord Atkin - Agreements of this kind are outside the realm of contracts altogether. • Jones v Padavatton (1969) - use of mother's house - relationship at the time of the agreement is important. Presumption can be rebutted · Merritt v Merritt (1970) - position is different where marriage is coming to an end or the spouses are separated. · Radmacher v Granatino (2010)- courts should give effect to ante-nuptial or post- nuptial agreements. Significance and importance of actions for rebuttal . Parker v Clark (1960) - sharing house with a view to inheritance - actions are important. · Simpkins v Pays (1955) - agreement to share winnings - was enforceable - the terms of the agreement are important. · The presumption is the starting point. · However, it can be rebutted. . The relationship between the parties, the subject matter of the agreement, the significance and importance of the actions undertaken by parties, will be taken into consideration.
· Presumption is difficult to rebut/overturn · Edwards v Skyways (1964) - 'ex gratia' does not override presumption . Esso Petroleum v Commissioners of Customs & Excise (1976) - promotional advertising can intend to create legal relations · Explicit language may be needed to rebut . Rose & Frank Co v JR Crompton and Bros (1925)