Intention to Create Legal Relations Requirements for a contract Offer Acceptance Consideration INTENTION TO CREATE LEGAL RELATIONS Why do we need a separate requirement of 'intention'? Some have argued that we don't - see eg Hepple (discussed in Stone, pp152-153) Usual justification based on'social agreements' Example · 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? How does English Law deal with this? Presumptions Rebuttable presumptions - ie evidence Domestic and social arrangements Presumption of 'no intention to create legal relations' Commercial agreements Presumption of intention to create legal relations Law in Practice - Domestic Balfour v Balfour (1919) Lord Atkin - 'Agreements of this kind are outside the realm of contracts altogether' Did other judges agree? Merritt v Merritt (1970) - position different where marriage is coming to an end Coward v MIB (1963) - presumption can apply outside family relationships Sadler v Reynolds (2005) - sometimes difficult to categorise a transaction - is it the transaction or the relationship between the parties that is important? Law in Practice - Domestic Further examples Simpkins v Pays (1955) - agreement to share winnings - enforceable - terms of agreement important But cf. Wilson v Burnett (2007) - agreement to share winnings unenforceable Law in Practice - Domestic Further examples
Parker v Clark (1960) - sharing house with a view to inheritance - actions important Jones v Padavatton (1969) - use of mother's house rent-free - relationship at time of agreement important Law in Practice - Commercial agreements Presumption is difficult to overturn Edwards v Skyways (1964) - 'ex gratia' does not override presumption Esso v Commissioners of Customs & Excise (1976) - promotional advertising can intend to create legal relations Explicit language may be needed Rose & Frank Co v Crompton (1925) Commercial agreements - further examples Explicit exclusion - Jones v Vernons Pools (1938) Context - Holloway v Cuozzo (1999) Public policy - Robinson v HM Customs & Excise (2000) Collective Agreements - Trade Unions Common law - Statute - Ford Motor Co Ltd v AEF (1969) - decision based on context s. 179 Trade Union and Labour Relations (Consolidation) Act 1992 - only enforceable when in writing and expressly stated to be enforceable Next Lecture: January 13th: 9 am